Market Profile Analysis dated 19th August 2020

Nifty Aug F:  11421 [ 11466 / 11404 ]

NF continued the imbalance of the previous day with a gap up open at new highs for the series and went on to tag 11452 as it stayed above PDH (Previous Day High) in the IB (Initial Balance) but was stuck in a very narrow range of just 35 points. The auction remained in this range for the next 2 periods before making a RE (Range Extension) lower in the ‘E’ period where it made new lows of 11407 but could not sustain below the IB and got back above the IBL to continue form a balance. The ‘J’ period then saw similar action as the ‘E’ period but on the upside as NF made an attempt to break above IBH and hit new hgihs of 11466 but was swiftly rejected back as it went on to complete the 80% Rule in the day’s developing Value and even made a fresh RE on the downside in the ‘L’ period confirming a FA (Failed Auction) at top before closing the day around the combo of the dPOC & VWAP of 11435. The day ended as a Neutral profile with completely higher Value but saw contraction of range as well as volumes which means poor trade facilitation so there is good chance of this balance giving way to an imbalance in the coming session.

Click here to view the latest profile of NF in MP Lite

  • The NF Open was a Open Auction Out of Range (OAOR)
  • The Day type was a Neutral Day (NeuD)
  • Largest volume was traded at 11435 F
  • Vwap of the session was at 11434 with volumes of 76.7 L and range of 62 points as it made a High-Low of 11466-11404
  • NF confirmed a FA at 11466 on 19/08 and the 1 ATR & 2 ATR objectives come to 11317 and 11169 respectively.
  • The settlement day Roll Over point (Aug) is 11095
  • The VWAP & POC of Jul Series is 10897 & 10803 respectively.
  • The VWAP & POC of Jun Series is 10110 & 10110 respectively.
  • The VWAP & POC of May Series is 9183 & 9109 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 11423-11435-11445

HVNs – 10918 / 10970 / 11095 / 11196 / 11310

Main Hypos for 20.08.2020:

a) NF needs to sustain above 11435 for a rise to 11460-484 / 11503-510 / 11541-553 & 11576-585
b) The auction staying below 11409 could fall to 11385-360 / 11335-311* / 11292-273 & 11250

Extended Hypos:
c) Above 11585, NF can probe higher to 11615-640 / 11677-699 & 11734*
d) If 11250 is taken out, NF could fall to 11230*-205 / 11190-167 / 11148-103


BankNifty Aug F:  22307 [ 22466 / 22213 ]

BNF also opened higher and got accepted above the level of 22280 as it went on to make a high of 22413 in the IB and similar to NF remained in a narrow range of just 150 points in the IB. The auction then made a C side extension on the upside tagging new highs for the day at 22434 but got stalled just below the series high of 22444 leading to a probe lower as it not only broke below VWAP but went on to make a RE lower in the E period where it made a low of 22237. However, BNF could not sustain below the IBL also as it got back in the IB and was forming a balanced profile before it made another attempt to break lower in the ‘I’ period where it made new lows of 22213 but once again was swiftly rejected back into the IB and this time it led to a probable short covering squeeze as it went on to make a RE on the upside in the ‘J’ period marking new highs for the series at 22466 but just as the day had seen so far, this new extreme also was rejected as the auction left a small but am important tail at these new highs and even went on to confirm a FA here as it briefly broke below the IBL in the ‘L’ period before closing the day at 22307 leaving a Neutral Gaussian profile with completely higher Value. Staying below today’s IBL, BNF could start a new leg lower towards the 1 ATR & 2 ATR objectives of 21968 & 21471 respectively in the coming session(s).

Click here to view the latest profile chart of BNF in MP Lite

  • The BNF Open was a Open Auction Out of Range (OAOR)
  • The Day type was a Neutral Day (NeuD)
  • Largest volume was traded at 22360 F
  • Vwap of the session was at 22353 with volumes of 48 L and range of 253 points as it made a High-Low of 22466-22213
  • BNF confirmed a FA at 22466 on 19/08 and the 1 ATR & 2 ATR objectives come to 21968 and 21471 respectively.
  • The settlement day Roll Over point (Aug) is 21615
  • The VWAP & POC of Jul Series is 22163 & 22087 respectively.
  • The VWAP & POC of Jun Series is 20918 & 21000 respectively.
  • The VWAP & POC of May Series is 18767 & 19633 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 22314-22360-22390

HVNs – 21545 / 21615 / 22188

Main Hypos for 20.08.2020:

a) BNF needs to sustain above 22360 for a rise to 22413-466 / 22550-600 / 22710 / 22829-885 & 22930
b) The auction accepting below 22261 could test 22213-140 / 22078-036 / 21960-930 / 21855-800 & 21740-715

Extended Hypos:

c) Above 22930, BNF can probe higher to 23000*-120 / 23208-230 / 23313-370 & 23414-440
d) Breaking below 21715, it could fall to 21660-600 / 21540-499 / 21425-312 & 21245-183

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