Market Profile Analysis dated 16th July 2020

Nifty Jul F:  10714 [ 10738 / 10581 ]

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

Previous day’s report ended with this ‘NF has closed as a Neutral Extreme Down day and the reference for the next open would be from 10591 to 10651

NF opened right at the Neutral Extreme (NE) reference hiigh of 10651 and made a freak tick of 10674 before probing through the entire NE zone of 10651 to 10591 as it even went on to break below it as it tagged 10581 in the A period but was swiftly rejected as it got back in the NE zone leaving a buying tail in the IB (Inital Balance). The auction then not only tested the NE zone high of 10651 but also made a C side RE where it got rejected once again leading to a test of VWAP which was briefly taken out in the ‘D’ period but the morning singles was defended as NF got back above VWAP after making a PBL at 10618. This PBL remained untouched as a Normal Day started to unfold with NF staying in a narrow range of just over 50 points for most part of the day forming a ‘p’ shape profile with a prominent POC being developed at 10650 before it gave a spike into the close from 10684 to 10738. This would be the reference for the next open where Spike Rules will be in play.

  • The NF Open was a Open Auction (OA)
  • The Day type was a Normal Day with a spike (‘p’ profile)
  • Largest volume was traded at 10650 F
  • Vwap of the session was at 10652 with volumes of 143.2 L and range of 157 points as it made a High-Low of 10738-10581
  • 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 10603-10650-10672

Main Hypos for 17.07.2020:

a) NF needs to stay above 10710 for a rise to 10740-769 / 10793-818 & 10845-879
b)The auction below 10710 can test lower levels of 10683 / 10650-626 / 10597-580 & 10556*

Extended Hypos:
c) Above 10879, NF can probe higher to 10914 / 10945-965 / 10995 & 11010-33
d) If 10556 is taken out, NF could fall to 10533-500 / 10480*-440 & 10400*


BankNifty Jul F: 21571 [ 21647 / 21025 ]
HVNs – 21000 / 21345 / 21430 / 21840 / 22050 / 22180 / 22720 / 22806

Previous day’s report ended with this ‘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

BNF also opened right at the upper end of previous day’s NE zone as it made a high of 21430 and unable to get above the NE high, the auction probed lower breaking below PDL (Previous Day Low) as it went on to make new lows for the week at 21025 in the A period. The ‘B’ period formed an inside bar leaving tails at both ends of the profile with the longer one at lows from 21025 to 21156 which indicated demand after which the auction formed a ‘p’ shape profile for the day with a failed RE attempt in the ‘G’ period building volumes at 21300 before it spiked higher in the last 45 minutes as it made a high of 21647 almost tagging the previous day’s VWAP before closing the day at 21571. Spike Rules will be in play for the next session and the reference is 21468 to 21647.

BNF has been forming a balance from last 3 days after the imbalance it started on the downside since last week and the 3-day composite has Value at 21160-21361-21676 (Click here to view the 3-day composite on MPLite). The auction could continue to build on this balance in the next session filling up the low volume zone of 21360 to 21690 before giving a move away from here.

  • The BNF Open was a Open Auction (OA)
  • The Day type was a Normal Day with a spike (‘p’ profile)
  • Largest volume was traded at 21300 F
  • Vwap of the session was at 21310 with volumes of 77.5 L and range of 622 points as it made a High-Low of 21647-21025
  • 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 21169-21300-21406

Main Hypos for 17.07.2020:

a) BNF needs to sustain above 21573 for a rise to 21659 / 21740*-786 / 21835-860 / 21925-22002 & 22055-116
b) The auction accepting below 21543 could test 21490-450 / 21360-300 / 21210-160 & 21100-021

Extended Hypos:

c) If 22116 is taken out, BNF could start a fresh probe to 22180*-236 / 22308-380 / 22430-524 & 22580-675
d) Breaking below 21021, there could be a fall to 20901-886 / 20784-704 / 20616-585 & 20525-484

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