Market Profile Analysis dated 21st September 2020

Nifty Sep F:  11256 [ 11527 / 11225 ]

NF made an OAIR (Open Auction In Range) start on low volumes as it remained mostly above previous week’s VAL for the first half of the day but importantly made a C side extension higher where it got rejected from just below the prominent weekly POC of 11532 as it made a high of 11527 which was an important cue. The auction then made a late RE (Range Extension) lower in the ‘G’ period as it left an extension handle at 11474 confirming a FA (Failed Auction) at highs and briefly took support at previous week’s FA of 11451 but once the ‘H’ period got rejected from below the IBL (Initial Balance Low), NF made a fresh RE to the downside as it left another extension handle at 11435 and went on to break previous week’s low in the ‘J’ period where it left the third extension handle of the day at 11402 as it not only completed the 1 ATR objective of 11376 from the day’s FA but also hit the 2 ATR objective from last Friday’s FA of 11599. The ‘K’ period continued the down move as it made a low of 11253 from where NF finally gave a pull back to 11318 in the ‘L’ period but it was just a small bounce after which it went on to make another leg down into the close falling by almost 100 points to hit the 2 ATR objective of 11225 from the day’s FA.

Click here to view NF move away from the weekly balance on MPLite

  • The NF Open was a Open Auction In Range (OAIR)
  • The Day type was a Neutral Extreme Day – Down (NeuX)
  • Largest volume was traded at 11493 F
  • Vwap of the session was at 11390 with volumes of 150.7 L and range of 302 points as it made a High-Low of 11527-11225
  • NF confirmed a FA at 11527 on 21/09 and completed the 2 ATR target of 11225 on the same day.
  • NF confirmed a FA at 11599 on 18/09 negating the earlier FA of 11578 and completed the 2 ATR target of 11304 on 21/09.
  • NF confirmed a FA at 11451 on 15/09 and completed the 1 ATR objective of 11596 on 16/09. This FA got tagged on the ‘T+5’th Day
  • NF confirmed a FA at 11202 on 02/09 and tagged the 2 ATR objective of 11470 on 11/09. This FA has not been tagged and is now a positional reference.
  • The settlement day Roll Over point (Sep) is 11607
  • The VWAP & POC of Aug Series is 11311 & 11311 respectively.
  • The VWAP & POC of Jul Series is 10897 & 10803 respectively.
  • The VWAP & POC of Jun Series is 10110 & 10110 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 11303-11493-11522

HVNs – 11400 / 11448 / 11485 / 11555 / 11664

Main Hypos for 22.09.2020:

a) NF needs to sustain above 11265 for a rise to 11285 / 11318-325 / 11354-365 & 11395-402
b) The auction staying below 11245 could test 11225 / 11202-195 / 11155-129 & 11085

Extended Hypos:
c) Above 11402, NF can probe higher to 11428-440 / 11468-493 / 11527-535 & 11565
d) If 11085 is taken out, NF could fall to 11062-040 / 11022 / 10982-963 & 10945


BankNifty Sep F:  21390 [ 22125 / 21290 ]

BNF started the day forming a balance in Friday’s spike zone which was a sign that it was accepting the larger time frame imbalance which had started and more confrimation of this came with a C side extension to 22125 which was swiftly rejected after which the auction made a nice bell curve till the ‘G’ period staying in a narrow range of just 250 points when it made a RE to the downside confirming a FA at highs and this triggered yet another trending move lower in BNF similar to the one it saw the previous session as it left couple of extension handles at 21838 & 21742 and not only completed the 1 ATR objective of 21515 from the FA but also hit the 3 IB target of 21431 as it made lows of 21375 in the ‘K’ period. The auction then gave a bounce to 21573 in the ‘L’ period where it left a PBH after which it resumed the trend lower to fall by almost 300 points in the last 45 minutes as it made new lows of 21290 at close.

Click here to view BNF continue to move away from the 7-day composite on MP Lite

  • The BNF Open was a Open Auction In Range (OAIR)
  • The Day type was a Neutral Extreme Day – Down (NeuX)
  • Largest volume was traded at 21983 F
  • Vwap of the session was at 21780 with volumes of 79.8 L and range of 835 points as it made a High-Low of 22125-21290
  • BNF confirmed a FA at 22125 on 21/09 and completed the 1 ATR target of 21515 on the same day. The 2 ATR target comes to 20904
  • The settlement day Roll Over point (Sep) is 23576
  • The VWAP & POC of Aug Series is 22444 & 21595 respectively.
  • The VWAP & POC of Jul Series is 22163 & 22087 respectively.
  • The VWAP & POC of Jun Series is 20918 & 21000 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 21577-21983-22090

HVNs – 22294 / 22390 / 22995 / 23688 / 23800 / 24250

Main Hypos for 22.09.2020:

a) BNF needs to sustain above 21426 for a rise to 21498-575 / 21655-692 / 21742-786 / 21838-890 & 21950-985
b) The auction staying below 21355 could test 21290-222 / 21183-138 / 21069 / 20970-904 & 20850-795

Extended Hypos:

c) Above 21985, BNF can probe higher to 22050-125 / 22185-220 / 22300-392* & 22460-550
d) Breaking below 20795, it could fall to 20750-690 / 20589-480 / 20391-319 & 20261-220

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