Market Profile Analysis dated 20th Apr 2020

Nifty Apr F:  9260 [ 9385 / 9215 ]

HVNs – 8555 / 8604 / 8670 / 8750 / 8800 / 8937 / 9015 / 9051 / 9180 / 9265 / 9310

Previous day’s report ended with this ‘On the upside, the FA of 9384 would be the level to be taken out & sustained to confirm a new leg higher and on the downside, 9270-35 & 9210 would be the important support levels to watch which if broken could get new initiative selling to take NF lower in the coming days

NF opened higher & tagged that FA of 9384 and got swiftly rejected from this positional reference as it probed lower through the ‘A’ period as it made lows of 9245 testing the level from where it had spiked higher on Friday. The ‘B’ period then made an inside bar but more importantly confirmed a tail at top from 9385 to 9300 which was an important one as this came at new highs & at an important supply point. The auction then made an attempt to probe higher in the next 2 periods as it got into singles but could only leave a PBH (Pull Back High) of 9337 in the ‘D’ period and the failure to get back above PDH (Previous Day High) meant that the PLR was still to the downside and this led to a RE (Range Extension) lower in the ‘E’ period as NF made new lows of 9215 but took support just above that 9210 level indicating demand coming in. The rest of the day remained in this range forming a nice balance with a higher PBL at 9226 & a lower PBH at 9335 as the auction formed a ‘b’ shape profile for the day with a very prominent POC at 9276 which had 12 of the 13 TPOS aligned together and this balance at new highs with a small excess confirmed from 9337 to 9385 could lead to a probe lower below 9210 with the first objectives being the VPOCs of 9180 & 9050 in the coming session(s).

  • The NF Open was a Open Auction  (OA)
  • The day type was a Normal Day (‘b’ shape profile)
  • Largest volume was traded at 9265 F
  • Vwap of the session was at 9278 with volumes of 187.6 L and range of 170 points as it made a High-Low of 9385-9215
  • NF had confirmed a multi-day FA at 8686 on 09/04  and tagged the 1 ATR objective of 9211 on 15/04. The 2 ATR target comes to 9736. This FA has not been tagged & is now important support.
  • NF confirmed a FA at 7521 on 24/03  and tagged the 2 ATR objective of 8595 on 26/03. This FA has not been tagged and is now positional support.
  • NF confirmed a FA at 9384 on 17/03  and tagged the 2 ATR move of 8613 on 18/03. This FA has not been tagged and is positional supply point. This FA was tagged on 20/04 but was immediately rejected from there so still holds as an important reference.
  • The Trend Day VWAP of 8620 would be important support level.
  • The settlement day Roll Over point (Apr) is 8686
  • The VWAP & POC of Mar Series is 9146 & 8592 respectively.
  • The VWAP & POC of Feb Series is 11944 & 12125 respectively.
  • The VWAP & POC of Jan Series is 12178 & 12132 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 9243-9265-9299

Main Hypos for the next session:

a) NF needs to sustain above 9276 & sustain for a rise to 9299 / 9332-37 / 9365-85 / 9412-16 & 9460-80
b) Immediate support is at 9252-40 below which the auction could test 9226-12 / 9180*-74 / 9130-27 / 9089 & 9050*

Extended Hypos:
c) Above 9480, NF can probe higher to 9510 / 9550-70 / 9615 & 9650-80
d) Below 9050, the auction can fall further to 9030-02 / 8985-50 / 8920-12 & 8892-75

-Additional Hypos*-
e) Sustaining above 9680* could take NF to 9715-40 / 9775-90 / 9850 & 9890
f) If 8875* is taken out, NF can start a new leg down to 8840-04 / 8775-45* / 8715-00 & 8667-62


BankNifty Apr F:  20482 [ 21100 / 20374 ]

HVNs – 18790 / 18970 / 19125 / 19270 /19399 / 19500 / 19820 / 19875 / 20000 / 20300 / 20700

BNF opened higher giving an exception as it gave a follow up to the Neutral Extreme profile of Friday but was almost an OH (Open=High) start around 21100 after which it probed lower getting back into the Neutral Extreme reference as it made lows of 20610 in the IB leaving a tail at top from 20836 to 21100. The auction then probed higher for the next 2 periods as it got accepted in that morning singles but got rejected at 20990 in the ‘D’ period where it confirmed a PBH & went on to make a RE to the downside in the ‘E’ period as it made new lows of 20517. The sellers however could not sustain the auction below the IBL as BNF started to form a balance rotating around VWAP for most part of the day before it gave a short covering move in the ‘K’ period as it got back above PDH but was stalled right below the earlier PBH of 20990 and this led to a spike lower into the close as the auction broke below the Neutral Extreme low of 20452 and made lows of 20375 before closing the day at 20482 confirming an excess at top from 20990 to 21100 which would be an important zone for the week. Spike rules will be in play for the next open & the reference is 20517 to 20375 apart from today’s prominent POC at 20700.

  • The BNF Open was a Open Auction  (OA)
  • The day type was a Normal Variation Day – Down (NV with a spike close)
  • Largest volume was traded at 20700 F
  • Vwap of the session was at 20785 with volumes of 68 L and range of 726 points as it made a High-Low of 21100-20375
  • BNF confirmed a FA at 17921 on 07/04  and tagged the 1 ATR target of 19818 on 08/04. The 2 ATR objective from this FA is at 21715.. This FA has not been tagged and is now positional support.
  • The settlement day Roll Over point (Apr) is 19380
  • The VWAP & POC of Mar Series is 22104 & 20248 respectively.
  • The VWAP & POC of Feb Series is 30692 & 30692 respectively.
  • The VWAP & POC of Jan Series is 31425 & 32104 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 20620-20700-20900

Main Hypos for the next session:

a) BNF has immediate supply at 20517-550 above which it could rise to 20620 / 20690-730 / 20785-800 / 20880-916 & 21000
b) The auction gets weak below 20456 and could move lower to 20395 / 20300*-250 / 20180-150 / *20055* & 19989-950

Extended Hypos:
c) Above 21000, BNF can probe higher to 21095-150 / 21250-275 / 21312-400 / 21460-480 & 21530
d) Below 19950, lower levels of 19875-830 / 19755-710 / 19555 / 19460 & 19399-375 could come into play

-Additional Hypos*-
e) BNF sustaining above 21530* could start a new leg up to 21574-634 / 21715-750 / 21822-842 / 21910 & 22000-110
f) If 19375* is taken out, BNF could fall further to 19325-260* / 19185-130 / 19065-028 / 18970-905 & 18770

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