Market Profile Analysis dated 18th May 2020

Nifty May F:  8826 [ 9139 / 8811 ]

HVNs – (9111) / (9180) / 9210 / 9306 / (9400)

Previous day’s report ended with this ‘NF made a narrow range balanced profile with failed attempts to extend the range on both ends of the Initial Balance leaving a Neutral Day as it stayed below the extension handle of 9183 and formed lower Value but took support just above recent lows of 9037 which would need to be taken out on good volumes for a fresh leg down towards 8995 / 8910 & 8760 in the coming session(s).

NF opened in previous day’s Value & got rejected from the VAH giving a late ORR (Open Rejection Reverse) to the downside and in the process even confirmed a multi-day FA (Failed Auction) at 9180 leading to a big move lower as it completed the 1 ATR objective of 8995 in the ‘A’ period itself and went on to almost tag the 2 ATR target of 8810 as it made a low of 8811 for the day leaving a ‘b’ shape long liquidation profile. However, the volume POC for the day shifted to the lows at 8826 at close which would be an important reference for the rest of the week holding which we could see a retracement towards the PBH of 8917 above which we have the long selling tail from 8949 to 9139.

  • The NF Open was a Open Rejection Reverse – Down  (ORR)
  • The day type was a Normal Variation Day – Down [‘b’ shape profile]
  • Largest volume was traded at 8864 F
  • Vwap of the session was at 8903 with volumes of 215.2 L and range of 328 points as it made a High-Low of 9139-8811
  • NF confirmed a multi-day FA at 9180 on 18/05  and almost tagged the 2 ATR objective of 8810 on the same day.
  • NF had confirmed a multi-day FA at 8706 on 09/04  and tagged the 2 ATR objective of 9756 on 30/04. This FA has not been tagged & is now important support.
  • The Trend Day VWAP of 8667 would be important support level.
  • The settlement day Roll Over point (May) is 9822
  • The VWAP & POC of Apr Series is 8999 & 9010 respectively.
  • The VWAP & POC of Mar Series is 9146 & 8592 respectively.
  • The VWAP & POC of Feb Series is 11944 & 12125 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 8814-8864-8914

Main Hypos for the next session:

a) NF needs to sustain above 8826 for a rise to 8844-68 / 8895-8903 / 8928*-49 / 8975-90 & 9012-37
b) The auction has immediate support at 8816-10 below which it could test 8792-60* / 8745 / 8721 / 8706-8686 & *8667*-48

Extended Hypos:
c) Above 9037, NF can probe higher to 9053-64 / 9086-96 / 9125-39 / 9155 / 9172-86 & 9200-13*
d) Below 8648, the auction can fall further to 8619-06 / 8560 / 8510-05 / 8465 & 8439*


BankNifty May F:  17532 [ 18711 / 17458 ]

HVNs – (17620) / (18350) / 18800 / 19220 / 19620 / 19800

Previous day’s report ended with this ‘with the day’s Value being totally lower, the PLR would still be towards the VPOC of 18350 & the FA of 18209 if the auction is able to get new sellers below today’s lows

BNF not only opened lower well below the yPOC of 18800 but also gave a OD (Open Drive) Down as it went on to tag the VPOC of 18350 & break below the FA of 18209 which lead to more liquidation and a fall of more than 1000 points as it revisted the 4th April FA of 17977 and made a low of 17760 in the IB. The auction continued to probe lower after making an inside bar in the C period as it tagged the VPOC of 17580 which was also the 1 ATR objective of the weekly FA of 20199 (Read the weekly report here) and took support at the VAL of 3rd April which was 17460 after which it formed a balance for the rest of the day leaving yet another ‘b’ shape profile with a prominent POC at 17620 and a long selling tail from 17945 to 18800.

  • The BNF Open was a Open Drive – Down  (OD)
  • The day type was a Normal Variation Day [‘b’ shape profile]
  • Largest volume was traded at 17620 F
  • Vwap of the session was at 17721 with volumes of 86 L and range of 1253 points as it made a High-Low of 18711-17458
  • BNF confirmed a FA at 18209 on 12/05  and tagged the 2 ATR objective of 19668 on 13/05. This FA not only got tagged on the ‘T+5’ Day but BNF went on to complete the reverse 1 ATR move of 17480 on 18/05.
  • BNF confirmed a FA at 21932 on 30/04  and tagged not just the 1 ATR objective of 21028 but also the 2 ATR target of 20125 on 04/05. This FA has not been tagged and is now positional supply point.
  • BNF confirmed a FA at 17977 on 07/04  and tagged the 2 ATR target of 21771 on 30/04. This FA had not been tagged and was positional support but however it got hit today and the auction accepted below it so no longer a valid reference.
  • The settlement day Roll Over point (May) is 21380
  • The VWAP & POC of Apr Series is 19605 & 19710 respectively.
  • The VWAP & POC of Mar Series is 22104 & 20248 respectively.
  • The VWAP & POC of Feb Series is 30692 & 30692 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 17469-17620-17821

Main Hypos for the next session:

a) BNF needs to sustain above 17532 for a rise to 17580-620 / 17712-760 / 17821-840 / 17930-945 / 18000-140 / 18209-230 & 18270-300
b) The auction remains weak below 17530 and could test 17485-460 / 17404-376 / 17311-265 / 17190-095 / 17022 / 16970-905 & 16860*-832

Extended Hypos:
c) Above 18300, BNF can probe higher to 18358-416 / 18475-535 / 18650-711 / 18800*-824 / 18882 / 18940-970 & 19080
d) Below 16832, lower levels of 16770 / 16721-675 / 16600-490 / 16395* / 16290 / 16206-170 & 16110-008 could come into play

For more tradeable ideas and intraday trading strategies based on MarketProfile and the OrderFlow live charts with OrderFlow analysis Live, subscribe to the trading room. The Vtrender Trading Room hosts India’s largest MarketProfile community live every trading session from 9.15 am to 3.30 pm.

If not a Trading Room member you can get immediate access at – https://in.explara.com/e/vtrender–trading–room/checkout