Market Profile Analysis dated 20th Mar 2020

Nifty Mar F:  8723 [ 8854 / 8130 ]

HVNs – (7900) / 8196 / 8280 / 8568 / 8740 / (8900) / (9110-120) / 9200 / 9380

Previous day’s report ended with this ‘NF needs to sustain above 8200-8230 on the upside failing which it could form Value in the low volume zone from 8145 to 8080-8076 and below it till 7900 in the coming session.’

NF opened within 30 points of previous close which was the closest it did in the last 11 trading sessions but displayed 2-way auction at open as it tagged 8150 but then quickly got above that 8200-30 and probed higher as it hit 8393 from where it got swiftly rejected as it came down to make new lows for the day at 8130 all in the ‘A’ period itself. The auction then began to coil for the next 3 periods as it stayed inside the range of the A period forming inside bars in the B & C periods and left a small cue in the ‘D’ period as it formed a lower low at 8226 which got confirmed as a PBL (Pull Back Low) as the ‘E’ period not only got above the high of ‘D’ period but went on to make a RE (Range Extension) leading to a OTF (One Time Frame) move till the ‘J’ period as NF tagged the vPOC of 8560 then scaled above the Trend Day VWAP of 8660 and the extension handle of 8721 as it made highs of 8854. This 600 point move in 6 periods then led to a retracement to VWAP which was broken in the ‘K’ period as it left a new PBL of 8435 before closing the day at 8723. Value for the day was overlapping to higher with NF making a 3-day composite in a large range which can be viewed here. The auction would need to stay above 8760 in the coming session(s) to continue probing higher towards the selling tail of 8908 to 9071 above which we have the VPOC of 9196, PBH of 9294 and finally the FA of 9358 as probable targets and on the downside, sustaining below 8700 could bring a test of the 3-day composite POC of 8560, the PBLs of 8435 & 8226 below which we have the low volume zone from 8130 to 8028.

  • The NF Open was a Open Auction In Range  (OAIR)
  • The day type was a Normal Variation Day – Up (NV)
  • Largest volume was traded at 8568 F
  • Vwap of the session was at 8490 with volumes of 393.3 L and range of 725 points as it made a High-Low of 8855-8130
  • The Trend Day VWAP of 18/03 at 8660 will be an important positional supply point in the days to come. This was taken out on 20/03 on closing basis & is no longer a reference.
  • NF confirmed a FA at 9358 on 17/03  and tagged the 2 ATR move of 8613 on 18/03. This FA is currently on ‘T+4’ Days
  • The settlement day Roll Over point (Mar) is 11610
  • The VWAP & POC of Feb Series is 11944 & 12125 respectively.
  • The VWAP & POC of Jan Series is 12178 & 12132 respectively.
  • The VWAP & POC of Dec Series is 12087 & 12182 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 8411-8568-8839

Main Hypos for the next session:

a) NF has immediate supply at 8740-60 above which it could rise to 8800-50 / 8885-8900 / 8950-80 / 9050-60 & 9087-9125
b) The auction has immediate support at 8700 below which it could fall to 8650-20 / 8592-56 / 8510-8490 / 8450-35 / 8400 & 8360-40

Extended Hypos:
c) Above 9125, NF can probe higher to 9150-60 / 9200-25 / 9270-95 / 9325-58 / 9375-85 & 9412
d) Below 8340, the auction can move lower to 8290-60 / 8226 / 8180-45 / 8076-50 & 8002

-Additional Hypos-*:
e) NF if gets accepted above 9412* could lead to a rise to 9460-80 / 9510-50 / 9570-9615 / 9650-80 & 9715-75
f) If 8002* is taken out, the auction can fall to 7950-40 / 7900-7850 / 7815-02 / 7774-33 & 7685

Extra Downside Hypos**:
g) Below 7685**, NF could fall lower to 7627 / 7598-72 / 7533-27 / 7485 & 7418-04
h) If 7404** is broken & sustained, lower levels of 7370-47* / 7308-7240 / 7168-59 / 7125 & 7046 could get tagged


BankNifty Mar F:  20294 [ 20933 / 19217 ]

HVNs – hvns @ 18930 / 19550 / 19785 / 19930 / 20184 / (20248) / 20385 / 20500 / 23000

BNF also made a two-way auction at the open as it fell by 500 points after opening at 19960 but gave a swift bounce to 20210 where it got rejected to give a drop this time of almost 1000 points as it made new lows for the day at 19218 and all this happened in the ‘A’ period and post this action packed TPO, the auction started to coil making narrower ranges over the next 3 periods and similar to NF, BNF also left a small PBL of 19442 in the ‘D’ period triggering a trending move higher till the ‘I’ period as the auction made multiple REs and made highs of 20933 stalling just below PDH of 20971 & the 18th March’s Trend Day VWAP of 20990. This indicated that the supply was returning in a strong manner in this zone leading to a big fall into the close as BNF retraced the entire rise from E period breaking below VWAP & leaving a PBL at 19654 in the ‘K’ period before closing the day at 20294 leaving an inside day and forming a balance on 3-day composite with Value at 19546-20252-20899 and the MP Lite chart for the same could be seen here.

  • The BNF Open was a Open Auction In Range  (OAIR)
  • The day type was a Normal Variation Day – Up (NV)
  • Largest volume was traded at 19550 F
  • Vwap of the session was at 20014 with volumes of 83.4 L and range of 1715 points as it made a High-Low of 20933-19217
  • The Trend Day VWAP of 18/03 at 20990 will be an important positional supply point in the days to come.
  • The settlement day Roll Over point (Mar) is 30520
  • The VWAP & POC of Feb Series is 30692 & 30692 respectively.
  • The VWAP & POC of Jan Series is 31425 & 32104 respectively.
  • The VWAP & POC of Dec Series is 31956 & 32102 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 19496-19550-20306

Main Hypos for the next session:

a) BNF needs to sustain above 20265 for a rise to 20304-383 / 20425-472 / 20647-683 / 20750 / 20840-890 & 20950
b) The auction has immediate support at 20248 below which it could probe down to 20184-130 / 20064-20000 / 19900 / 19785 / 19700-655 & 19550

Extended Hypos:
c) Above 20950, BNF can probe higher to 21030-80 / 21210 / 21270-280 / 21350-375 / 21460-480 & 21530-600
d) Below 19550, lower levels of 19430-360 / 19290-250 / 19150 / 19055-00 / 18930 & 18850-823 could come into play

Additional Hypos*:
e) BNF if gets accepted above 21600* could lead to a rise to 21780-796 / 21840-870 / 22000-050 / 22200 / 22350-380 & 22520-560
f) If 18823* is taken out, the auction can fall to 18750-675 / 18648-576 / 18430-381 / 18329 / 18284-240 / 18154-137 & 18031*

Extra Downside Hypos**:
g) Below 18031**, BNF could fall lower to 17915 / 17732 / 17665-636 / 17583-520* / 17474 & 17405-375
h) Break of 17375** could bring a fresh leg down to 17248 / 17159 / 16999*-950 / 16894*-860* / 16740 & 16524-488

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