Market Profile Analysis dated 15th July 2020

Nifty Jul F:  10628 [ 10823 / 10591 ]

HVNs – 10190 / 10293 / 10475 / 10570 / 10728 / 10764

Previous day’s report ended with this ‘NF then made a pull back to VWAP as it formed a balance in the lower part of the day’s profile with the DPOC also shifting down to 10619 indicating shorts booking out as it closed the day at 10613

NF not only opened higher but made a trending move on the upside for the first 5 periods including a rare C side RE (Range Extension) which did not fail as it left an extension handle at 10745 and went on to tag the VPOC of 10810 in the ‘E’ period where it made a high of 10823 almost completing the 2 IB objective of 10829. The auction however stopped this OTF (One Time Frame) probe in the ‘F’ period and went on to test VWAP of the day in the ‘G’ period as it left a PBL (Pull Back Low) of 10758 which indicated that the buyers were still present and defending the morning extension handle. NF then made a slow probe higher over the next 3 periods but ended up making a lower high of 10813 in the ‘J’ period which later got confrimed as a PBH (Pull Back High) and this inability to make new highs led to another test of VWAP in the ‘K’ period and this time the demand was not strong enough which caused huge liquidation as the auction not only broke below 10748 but went on to make multiple REs on the downside as it went on to tag the yPOC of 10618 while making a low of 10591 almost completing a 2 IB move lower too. NF has closed as a Neutral Extreme Down day and the reference for the next open would be from 10591 to 10651.

  • The NF Open was a Open Auction In Range (OAIR)
  • The Day type was a Neutral Extreme Day – Down (NeuX)
  • Largest volume was traded at 10776 F
  • Vwap of the session was at 10737 with volumes of 179.8 L and range of 232 points as it made a High-Low of 10823-10591
  • NF confirmed a FA at 10879 on 13/07 and tagged the 2 ATR target of 10583 on 14/07.
  • NF confirmed a multi-day FA at 10533 on 06/07 and tagged the 1 ATR objective of 10742 on 06/07. The 2 ATR target is at 10950. This FA has not been tagged and is now positional support.
  • NF confirmed a FA at 10440 on 02/07 and tagged the 2 ATR objective of 10868 on 13/07. This FA has not been tagged and is now positional support.
  • NF confirmed a FA at 10172 on 29/06 and and the tagged the 2 ATR target of 10619 on 06/07. This FA has not been tagged and is now positional support.
  • The 18th June & 01st July Trend Day VWAPs of of 9957 & 10350  would be important support levels.
  • The settlement day Roll Over point (Jul) is 10240
  • The VWAP & POC of Jun Series is 10110 & 10110 respectively.
  • The VWAP & POC of May Series is 9183 & 9109 respectively.
  • The VWAP & POC of Apr Series is 8999 & 9010 respectively.

You can check the monthly charts & other swing levels for Nifty & NF here & for the weekly charts & analysis, please click here.

Daily Zones:

  • Value zones (volume profile) are at 10700-10776-10817

Main Hypos for 16.07.2020:

a) NF needs to stay above 10651 for a rise to 10686-696 / 10720-740 & 10769-793
b) The auction below 10591 can test lower levels of *10556*-533 / 10500-480* & 10440

Extended Hypos:
c) Above 10793, NF can probe higher to 10817-845 / 10879-914 & 10945
d) If 10440 is taken out, NF could fall to 10400* / 10367-350 & 10321-290**


BankNifty Jul F: 21321 [ 21940 / 21212 ]
HVNs – 21000 / 21345 / 21430 / 21840 / 22050 / 22180 / 22720 / 22806

BNF opened higher confirming that the previous day sellers had booked out which had caused the yPOC to shift lower to 21380 as it negated the extension handle of 21680 and continued to probe in the selling tail even making a C side extension higher which for once got accepted above IB. The auction then made a fresh RE higher in the ‘E’ period as it tagged 21940 but was stopped just below the PDH of 21944 and also the 1.5 IB objective if 21943 which meant that the supply was overcoming the demand. BNF then made a nice balance till late afternoon forming a ‘p’ shape profile but the break into the morning singles in the ‘K’ period triggered a big liquidation move into the close as it not only made new lows for the day but went on to tag the yPOC and also PDL as it made a similar low of 21212 before closing at the lowest level of 21321 for this series. The range for the day including the high & low were identical to previous day and though Value was being formed higher, the close was that of a Neutral Extreme so the reference for the next open would be from 21212 to 21430.

  • The BNF Open was a Open Auction In Range (OAIR)
  • The Day type was a Neutral Extreme Day – Down (NeuX)
  • Largest volume was traded at 21750 F
  • Vwap of the session was at 21659 with volumes of 82 L and range of 728 points as it made a High-Low of 21940-21212
  • BNF confirmed a FA at 20901 on 29/06 and the tagged the 2 ATR target of 22625 on 07/07. This FA has not been tagged and is now positional support.
  • The 18th June & 01st July Trend Day VWAPs of 20494 & 21650 would be important support levels.
  • The settlement day Roll Over point (Jul) is 21430
  • The VWAP & POC of Jun Series is 20918 & 21000 respectively.
  • The VWAP & POC of May Series is 18767 & 19633 respectively.
  • The VWAP & POC of Apr Series is 19605 & 19710 respectively.

For the Monthly charts & other swing levels for BankNifty & BNF click here & for the weekly charts & analysis, please click here.

Daily Zones:

  • Value zones (volume profile) are at 21572-21750-21930

Main Hypos for 16.07.2020:

a) BNF needs to sustain above 21356 for a rise to 21440-471 / 21526-590 / 21658-786 / 21835-953 & 22002
b) The auction accepting below 21310 could test 21257-210 / 21120-000* / 20901 / 20784-704 & 20616

Extended Hypos:

c) If 22002 is taken out, BNF could start a fresh probe to 22116-180* / 22274-308 / 22380 / 22430-482 & 22524-580
d) Breaking below 20616, there could be a fall to 20525-484 / 20436-396 / 20300* / 20200-139* & 20040

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