Market Profile Analysis dated 22nd August

Market Profile Analysis dated 22nd August 1

Nifty Aug F:  10732 [ 10918 / 10708 ]

Yesterday’s report ended with this ‘Acceptance below 10920 would mean a test of the monthly lows of 10807 could be coming‘ and today NF stayed below this level as it made a high of 10917 at open and immediately broke below the PDL (Previous Day Low) of 10901 giving an ORR (Open Rejection Reverse) start which meant that the PLR (Path of Least Resistance) would continue to remain down. The auction then made a small IB with the same range as yesterday of of just 51 points as it made a low of 10866 in the ‘B’ period and left a small selling tail from 10892 to 10932. (Click here to view the profile chart for August NF for better understanding) NF then made a RE (Range Extension) down as early as in the ‘C’ period & followed it up with successive multiple REs in the next 2 periods as it tagged lows of 10816 in the ‘E’ period almost tagging the 2 IB objective down for the day after which it balanced in the ‘F’ & ‘G’ periods looking for new sellers and not finding any moved higher in the ‘H’ period as it got above VWAP making a high of 10885 but was rejected which was a good confirmation signal for the sellers to return as the buying was not good enough to keep the auction above VWAP. This paved way for a trending move down for the rest of the day as NF made a OTF (One Time Frame) move down into the close as it made new monthly lows leaving an extension handle at 10807 on the larger time frame and made lows of 10708 in the ‘M’ period tagging an important reference of 10735 which was an weekly VPOC along with the 2 ATR objective from the FA of 11083. The auction seems to be moving away from the monthly composite it had been making so far (click here to view the updated chart) and has closed in a spike from 10767 to 10708 which will be the immediate reference for the next session and remains weak for more downside till it stays inside or below this.

Market Profile Analysis dated 22nd August 2

  • The NF Open was an Open Rejection Reverse – Down (ORR)
  • The day type was a Trend Day – Down
  • Largest volume was traded at 10853 F
  • Vwap of the session was at 10826 with volumes of 134.7 L and range of 209 points as it made a High-Low of 10917-10708
  • NF confirmed a multi-day FA at 11083 on 21/08 and tagged the 2 ATR objective of 10736 on 22/08.
  • NF had confirmed a FA at 10807 on 05/08 and tagged the 2 ATR objective of 11085 on 08/08. This FA has been broken and could now act as positional supply point.
  • The Trend Day POC & VWAP of 22/08 at 10853 10826 would be important references on the upside.
  • The Trend Day POC & VWAP of 19/07 at 11478 11523 are now positional references on the upside.
  • The higher Trend Day VWAP of 05/07 at 11965 is another important reference higher.
  • The settlement day Roll Over point is 11315
  • The VWAP & POC of Jul Series is 11575 & 11547 respectively.
  • The VWAP & POC of Jun Series is 11833 & 11714 respectively.
  • The VWAP & POC of May Series is 11613 & 11696 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 10785-10853-10894

Hypos / Estimates for the next session:

a) NF needs to stay above 10735-740 for a rise to 10767-780 & 10807
b) Staying below 10735, the auction can test 10708-702 / 10689-684 & 10662
c) Above 10807, NF can probe higher to 10826-830 / 10853 & 10884-892
d) Below 10662, auction becomes weak for 10645-631 / 10619-615 & 10586-582
e) If 10892 is taken out, the auction can rise to 10912 / 10930-935 & 10952-960
f) Break of 10582 can trigger a move lower to 10568-566 / 10544 & 10525


BankNifty Aug F: 27021 [ 27746 / 26971 ]

Market Profile Analysis dated 22nd August 3

Similar to NF, BNF also moved away from the monthly composite (click here to view the composite) it was making giving an ORR start as it got rejected from the HVN and important reference of 27735-740 at open breaking below the PDL and stayed below it making a ‘b’ shape profile for the first half of the day holding on to the lows of 27424 it had left in the ‘E’ period but then saw a huge move down in the second half of the day as it trended lower after leaving a pull back high of 27569 in the ‘H’ period as if left an extension handle at 27405 and broke below the Trend Day VWAP of 27380 which was holding since 5th March 2019 and fell by another 400 points from there as it made lows of 26971 in the ‘M’ period. The auction has closed in a spike from 27156 to 26971 which will be the immediate reference for the next session.

  • The BNF Open was an Open Rejection Reverse – Down (ORR)
  • The day type was a Trend Day – Down
  • Largest volume was traded at 27485 F
  • Vwap of the session was also at 27406 with volumes of 36.6 L in a session which traded in a range of 775 points making a High-Low of 27746-26971
  • The auction had stayed above the Trend Day POC of 27740 left on 13/08 which was important support and got broken today.
  • The Trend Day POC & VWAP of 22/08 at 27485 27406 would be important references on the upside.
  • The Trend Day VWAP of 19/07 at 30085 is now positional supply point.
  • The higher Trend Day VWAP of 18/07 & 08/07 at 30598 & 30995 remain important references going forward
  • The settlement day Roll Over point is 29250
  • The VWAP & POC of Jul Series is 30425 & 30586 respectively.
  • The VWAP & POC of Jun Series is 30914 & 30961 respectively.
  • The VWAP & POC of May Series 30211 & 28940 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 27219-27485-27661

Hypos / Estimates for the next session:

a) BNF needs to sustain above 27075 for a move to 27150-156 & 27225
b) Immediate support is at 27025-27000 below which the auction can test 26960-952 / 26900 & 26850-801
c) Above 27225, BNF can probe higher to 27278-299 / 27325 & 27400-425
d) Below 26801, lower levels of 26755-740 / 26685 & 26610-600 could come into play
e) Sustaining above 27425, BNF can give a fresh move up to 27485-510 & 27570-606
f) Break of 26600 could trigger a move down 26530-520 / 26465-440 & 26360-350

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