Market Profile Analysis dated 21st August 2020

Nifty Aug F:  11377 [ 11430 / 11361 ]

Previous day’s report ended with this ‘Value for the day was completely lower & the 2-day composite represents a DD (Double Distribution) with the HVNs at 11301 & 11435 where the auction seems to be currently locked in

NF made a gap up open of 90 points giving a hat-trick of OAOR start and just like the previous 2 days remained stuck in a narrow IB range of just 39 points and got rejected while making attempts to extend the range on both ends ending up with the third Neutral Day in a row as it made a high of 11430 stalling just below the VPOC of 11435 and took support just above PDH while making a low of 11361 while leaving a prominent POC at 11395 which would be the opening reference to watch in the next session.

Click here to view the NF forming a hat-trick of Neutral Profiles on MPLite

  • The NF Open was a Open Auction Out of Range (OAOR)
  • The Day type was a Neutral Day (NeuD)
  • Largest volume was traded at 11395 F
  • Vwap of the session was at 11392 with volumes of 78.9 L and range of 69 points as it made a High-Low of 11430-11361
  • NF confirmed a FA at 11466 on 19/08 and tagged the 1 ATR objective of 11317 on 20/08. The 2 ATR objective comes to and 11169.
  • NF confirmed a new FA at 11360 on 20/08 and the 1 ATR objective comes to and 11219. This FA was negated on 21/08 as NF opened & stayed above it and the 1 ATR target on the upside comes to 11501.
  • 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 11381-11395-11402

HVNs – 10918 / 10970 / 11095 / 11196 / 11310

Main Hypos for 24.08.2020:

a) NF needs to sustain above 11395 for a rise to 11413-435* / 11460-484 & 11501-510
b) The auction staying below 11373 could fall to 11348-328 / 11305* & 11270-230*

Extended Hypos:
c) Above 11510, NF can probe higher to 11541-585 / 11615 & 11631*-650
d) If 11230 is taken out, NF could fall to 11193 / 11167-125 & 11103


BankNifty Aug F:  22283 [ 22378 / 22118 ]

Previous day’s report ended with this ‘BNF also represents a DD on the 2-day composite with the HVNs at 21985 & 22360 so staying above 21985 the auction could fill up the low volume zone between these HVNs in the coming session

BNF also opened with a big gap up of 191 points and continued to probe higher displaying more intent as it made highs of 22318 in the IB and left a long buying tail at lows which meant that the downside for the day was limited. However, the buyers were not able to extend the range as the auction remained in the IB range for most part of the day while testing the buying tail as it made a PBL of 22194 in the ‘F’ period before it made a late RE attempt in the ‘I’ period as it tagged that VPOC of 22360 while hitting new highs of 22378 but was immediately rejected as it left a 50 point selling tail from 22328 to 22378 and closed at the POC of the ‘p’ shape Normal profile for the day.

Click here to view the Normal Day profile of BNF on MP Lite

  • The BNF Open was a Open Auction Out of Range (OAOR)
  • The Day type was a Normal Day (‘p’ shape profile)
  • Largest volume was traded at 22280 F
  • Vwap of the session was at 22269 with the lowest volumes of this series at 38.7 L and range of 260 points as it made a High-Low of 22378-22118
  • BNF confirmed a FA at 22466 on 19/08 and tagged the 1 ATR target of 21968 on 20/08. the 2 ATR objective comes to 21471 respectively.
  • BNF confirmed a new FA at 22090 on 20/08 and the 1 ATR objective comes to and 21607. This FA was negated on 21/08 as BNF opened & stayed above it and the 1 ATR target on the upside comes to 22573.
  • 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 22252-22280-22308

HVNs – 21545 / 21615 / 22188

Main Hypos for 24.08.2020:

a) BNF needs to sustain above 22317 for a rise to 22370 / 22413-444 / 22500-550 / 22600-710 & 22829-885
b) The auction accepting below 22252 could test 22194-155 / 22090-033 / 21984*-923 / 21860-831 & 21744-660

Extended Hypos:

c) Above 22885, BNF can probe higher to 22930 / 23000*-120 / 23208-23230 & 23313-370
d) Breaking below 21660, it could fall to 21600* / 21540-499 / 21425-312 & 21245-183

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