Market Profile Analysis dated 21st October 2020

Nifty Oct F: 11927 [ 12017 / 11767 ]

NF opened higher much above the yPOC of 11893 and gave an Open Drive on just about average volumes as it took out previous week’s Trend Day high of 11999 & the swing high of 12003 in the IB as it hit 12006 but once again stalled in this zone and unable to make a RE higher, it gave a dip below VWAP leaving a PBL (Pull Back Low) at 11972 in the ‘E’ period. The auction then made an attempt to extend higher as it made new highs of 12017 in the ‘F’ period and followed it up with a similar high of 12015 in the ‘G’ period which clearly hinted at the buying getting exhausted and this failed attempt led to a huge liquidation move in the ‘I’ period as NF got back into previous day’s range and confirming a FA (Failed Auction) at highs. The auction then not only completed the 1 ATR objective of 11879 but went on to make an emotional low of 11767 almost tagging the vPOC of 11765 from 16th Oct where it finally saw some strong demand coming back visible in the buying tail it left from 11767 to 11793. The laggard shorts were then forced to cover in the last 45 minutes as NF made a quick move above VWAP while tagging 11949 leaving a Neutral Day which completely engulfed the last 2 profiles of this week.

Click here to view NF form a Neutral Day on MPLite

  • The NF Open was a Open Drive – Up (on average volumes)
  • The Day type was a Neutral Day (NeuD)
  • Largest volume was traded at 11985 F
  • Vwap of the session was at 11908 with volumes of 161.8 L and range of 250 points as it made a High-Low of 12017-11767
  • NF confirmed a FA at 12017 on 21/10 and tagged the 1 ATR objective of 11879 on the same day. The 2 ATR target comes to 11742.
  • 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 11862-11985-12014

HVNs – 10962 / 11220* / 11425 / 11590 / 11740 / 11890* / 11942

Hypos for 22.10.2020:

a) NF needs to sustain above 11944 for a rise to 11985 / 12012-059 / 12082-121 & 12153-180
b) The auction staying below 11930 could test 11890-860 / 11817-783 & 11742-720 & 11680


BankNifty Oct F:  24665 [ 24880 / 24102 ]

BNF opened higher and gave a drive up right from the selling extension handle of 24475 from the Trend Day Down profile of 31st Aug as it went on to make a high of 24829 in the IB leaving singles from 24715 to 24470. The auction seemed to be negotiating the supply from just below the big selling tail of 24936 to 25316 of 31st Aug as it made multiple REs higher from the ‘C’ to the ‘G’ period where it formed new highs of 24880 and was forming a ‘p’ shape profile for the day but the decisive break of VWAP in the ‘I’ period triggered a fast & significant fall as BNF negated the morning singles and went on to tag the yPOC of 24350. This downmove continued as the auction made new lows for the day at 24102 in the ‘K’ period which marked the completion of the 2 IB target and the stall right above the PDL of 24086 suggested that the buyers were coming back and this brought about an equally quick probe on the upside in the closing 45 minutes as BNF got back to 24746 almost hitting the dPOC of 23800 before closing the day at 24665.

Click here to view the BNF continue to form Value above the 6-day composite on MPLite

  • The BNF Open was a Open Drive – Up (OD)
  • The Day type was a Neutral Day (NeuD)
  • Largest volume was traded at 24800 F
  • Vwap of the session was at 24578 with volumes of 96.8 L and range of 778 points as it made a High-Low of 24880-24102
  • 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 24448-24800-24868

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

Hypos for 22.10.2020:

a) BNF needs to sustain above 24703 for a rise to 24800-860 / 24936 / 25008-165 / 25251-325 & 25402-499
b) The auction staying below 24625 could test 24570 / 24490-400 / 24280-207 / 24125-072 & 23985-873

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