Market Profile Analysis dated 22nd Apr 2020

Nifty Apr F:  9188 [ 9220 / 8933 ]

HVNs – 8555 / 8604 / 8670 / 8750 / 8800 / 8937 / 9018 / 9051 / 9102 / 9187 / 9265 / 9310

Previous day’s report ended with this ‘The auction today remained completely inside the Value of the 4-day composite from 9th to 16th April & looks set to move away from here continuing the probe lower once it sustains below today’s low towards the next VPOCs of 8750 & 8450 in the coming session(s). On the upside, the PBHs of 9014 & 9050 would be the immediate references that need to be taken out for any possibility of a bounce coming as we have a big selling tail from 9050 to 9215.

NF made an OAIR start and remained in previous day’s Value till the IB (Initial Balance) got over as it made a high of 9013 just below yesterday’s PBH (Pull Back High) of 9014 and a low of 8933 which was just above the PBL of 8930. The second consecutive day of a narrow IB range indicated that we could have another mutiple IB day which got more confirmation with the auction giving a big RE (Range Extension) in the C period as it left an extension handle at 9013 and scaled above PDH (Previous Day High) to enter the big selling tail from 9050 to 9215. NF then made a trending move higher all day as it completed the 3 IB objective of 9174 and even went on to negated the entire tail by making a high of 9220 thus making a technical gap close. The day’s profile resembles a ‘p’ shape indicating that the shorts were forced to cover today with Value also higher but the auction is critically placed just below the Gaussian profile of Monday which has a prominent POC at 9276 which could act as a magnet if NF gets above 9228 in the next session. On the downside, the second extension handle of 9163 would be the immediate support below which today’s POC of 9102 & PBL of 9082 would be on watch and if broken can lead to a test of 9041 & 9013.

  • 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 9102 F
  • Vwap of the session was at 9085 with volumes of 194.9 L and range of 287 points as it made a High-Low of 9220-8933
  • 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 9023-9102-9191

Main Hypos for the next session:

a) NF needs to sustain above 9192 & sustain for a rise to 9216-28 / 9260-70* / 9299 / 9332-37 & 9365-85
b) Immediate support is at 9180-63 below which the auction could test 9144-28 / 9102-9085 / 9056-41 / 9016-13 & 8986

Extended Hypos:
c) Above 9385, NF can probe higher to 9412-16 / 9460-80 / 9510 / 9550 & 9580
d) Below 8986, the auction can fall further to 8962 / 8925 / 8892-75 / 8840-28 / 8808-04 & 8775

-Additional Hypos*-
e) Sustaining above 9580* could take NF to 9615 / 9650-80 / 9715-40 & 9775-90
f) If 8775* is taken out, NF can start a new leg down to 8745*-36 / 8700 / 8667-62 / 8638-*20* & 8590


BankNifty Apr F:  19677 [ 19838 / 19002 ]

HVNs – 18790 / 18970 / 19125 / 19280 / 19440 / 19820 / 19875 / 20000 / 20300 / 20700

Previous day’s report ended with this ‘Value for the day was lower & BNF remained in the 5-day composite it had formed from 8th to 16th Apr so staying below 19280, it could continue to probe lower towards the composite VAL of 18990 and below it the VPOCs of 18860 & 18810 in the coming sessions

BNF opened below 19280 and broke below the PDL as it continued to have a negative bias in the IB making new lows of 19002 in the ‘B’ period where it stalled just above the first objective of 18990 which was a sign that the downside was getting limited. The auction then probed higher as it scaled back above 19280 and went on to make a RE to the upside in the ‘C’ period and continued to make higher highs of 19540 & 19590 in the next 2 periods completing the 1.5 IB target. BNF then stayed in a narrow range till the ‘H’ period where it made almost similar highs of 19580 and not finding fresh demand made a probe below VWAP in the ‘I’ period breaking below the 19280 level but was rejected back above it in the ‘J’ period as it left a PBL at 19184 which meant that new demand has come in & could trigger a fresh leg higher. The auction then made made new highs for the day in the ‘K’ period as it left an extension handle at 19590 and not only completed the 2 IB objective of 19715 but went on to make new highs of 19838 in the ‘K’ period before closing the day at 19677. BNF remained mostly in previous day’s range and so the Value for the day was also overlapping leading to a nice 2-day balance but would need to get above 19880 for a probable move towards closing that gap it has till 20374. On the downside, 19635 & 19590 would be the important references below which 19440 & 19380 could come into play in the next session.

Click here to view the MPLite chart of the 2-day composite plus check how today’s low took support at the composite VAL of the earlier 5-day balance

  • 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 19420 F
  • Vwap of the session was at 19406 with volumes of 75.4 L and range of 836 points as it made a High-Low of 19838-19002
  • 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 19080-19420-19540

Main Hypos for the next session:

a) a) BNF has immediate supply at 19710 above which it could rise to 19782 / 19828-870 / 19950-990 / 20055 & 20150-180
b) The auction gets weak below 19635 and could move lower to 19590 / 19510-483 / 19420 / 19368-358 & 19260-230

Extended Hypos:
c) Above 20180, BNF can probe higher to 20250-300 / 20374-395 / 20456 / 20517-550 & 20620
d) Below 19230, lower levels of 19184-125 / 19044 / 18970-905 / 18770 & 18700 could come into play

-Additional Hypos*-
e) BNF sustaining above 20620* could start a new leg up to 20690-730 / 20785-800 / 20880-916 / 21000 & 21095-150
f) If 18700* is taken out, BNF could fall further to 18660-570 / 18507-483 / 18430-375 / 18300 & 18225-195*

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