Market Profile Analysis dated 19th October 2020

Nifty Oct F:  11889 [ 11899 / 11818 ]

NF opened with a big gap up pf 85 points and remained above PDH (Previous Day High) as it negated the Trend Day Extension handles of 11832 & 11864 while making a high of 11890 in the IB (Initial Balance). The auction then made a C side extension hitting new highs of 11899 but could not take out the first & main extension handle of 11908 indicating that the sellers were defending this zone which resulted in a probe below VWAP as NF entered the morning buying tail from 11840 to 11818 and found byers coming back as it made a low of 11824 after which it formed a nice balance for the rest of the day leaving a second successive Normal Day with a prominent POC at 11874. Value was completely higher so the PLR remains to the upside as long as the auction stays above 11850.

Click here to view back to back Normal Days in NF on MPLite

  • The NF Open was a Open Auction Out of Range (OAOR)
  • The Day type was a Normal Day
  • Largest volume was traded at 11874 F
  • Vwap of the session was at 11863 with volumes of 88.6 L and range of 80 points as it made a High-Low of 11899-11818
  • NF confirmed a FA at 11817 on 14/10 and tagged the 1 ATR objective of 11965 on the same day. This FA got revisited on 15/10 and completed the 1 ATR move down to 11669
  • NF had confirmed a FA at 10857 on 25/09 and tagged the 2 ATR objective of 11165 on 28/09. This FA has not been tagged and is now positional support.
  • The settlement day Roll Over point (Oct) is 10830
  • The VWAP & POC of Sep Series is 11353 & 11560 respectively.
  • The VWAP & POC of Aug Series is 11311 & 11311 respectively.
  • The VWAP & POC of Jul Series is 10897 & 10803 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 11854-11874-11894

HVNs – 10962 / 11220* / 11425 / 11590 / 11740 / 11870* / 11920

Hypos for 20.10.2020:

a) NF needs to sustain above 11894 for a rise to 11934-980 / 12012-059 & 12088-121
b) The auction staying below 11874 could test 11842-810 / 11765-720 & 11680-655


BankNifty Oct F:  24347 [ 24410 / 23786 ]

BNF also opened with a huge gap up of 311 points as it got above the Trend Day SOC (Scene Of Crime) at 23854 clearly indicating that fresh and aggressive buying had come back as it continued to probe higher and went past not just the Trend Day high but also the previous week high as it tagged new highs for the series at 24227 in the IB and left a long initiative tail from 23987 to 23786. The auction then made the dreaded C side RE where it made new highs of 24269 and gave a typical probe back to VWAP which was defended by the buyers as it left a PBL (Pull Back Low) at 24024 in the ‘F’ period. BNF then made a probe back to the IBH before making a fresh RE in the ‘I’ period and following it up with a small spike into the close where it hit 24410 before closing the day at 24347. The day’s profile represents a ‘p’ shape which indicates short covering but this could also bring a fresh leg higher as BNF seems to have made an initiative move away from the 6-day balance which can be seen in the below link.

Click here to view the BNF moving away from the 6-day composite on MPLite

  • The BNF Open was a Open Auction Out of Range (OAOR)
  • The Day type was a Normal Variation Day – Up (NV)
  • Largest volume was traded at 24180 F
  • Vwap of the session was at 24151 with volumes of 74.5 L and range of 624 points as it made a High-Low of 24410-23786
  • BNF had confirmed a FA at 20431 on 25/09 and tagged the 2 ATR objective of 21490 on 28/09. This FA has not been tagged and is now positional support.
  • The settlement day Roll Over point (Oct) is 20490
  • The VWAP & POC of Sep Series is 22320 & 22320 respectively.
  • The VWAP & POC of Aug Series is 22444 & 21595 respectively.
  • The VWAP & POC of Jul Series is 22163 & 22087 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 24041-24180-24349

HVNs – 20538 / 20822 / 21400* / 22090 / 22640 / 22890 / 23330* / 23730

Hypos for 20.10.2020:

a) BNF needs to sustain above 24380 for a rise to 24475-531 / 24594-650 / 24720-846 / 24936 & 25000-150
b) The auction staying below 24320 could test 24243-150 / 24040 / 23985-873 / 23785-730 & 23600

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