Market Profile Analysis dated 22nd July 2020

Nifty Jul F:  11110 [ 11187 / 11040 ]

HVNs – 10190 / 10293 / 10475 / 10570 / 10728 / 10764

Previous day’s report ended with this ‘However, the range and volumes for the 2 days this week have been contracting which means trade facilitation is getting poor hence could lead to a retracement unless there is a fresh volume explansion happening in the coming session(s)

NF opened slightly higher but made a freak high of 11203 & a freak low of 10805 in the opening minute after which it largely remained in previous day’s range for most part of the day as it left a PBH (Pull Back High) at 11176 in the ‘H’ period which led to a long liquidation move lower as the auction broke below PDL (Previous Day Low) and went on to make similar lows of 11040 in the ‘K’ & ‘L’ periods before closing at 11110. NF is currently forming a 2-day balance forming with Value at 11100-11125-11163 and could continue to do the same before giving a move away from this zone of 11010 to 11222.

Click here to view the MP Lite chart of the latest profile of NF

  • The NF Open was a Open Auction In Range (OAIR)
  • The Day type was a Normal Variation Day – Down (NV)
  • Largest volume was traded at 11125 F
  • Vwap of the session was at 11118 with volumes of 129.5 L and range of 147 points as it made a High-Low of 11186-11040
  • NF confirmed a FA at 10921 on 20/07 and tagged the 1 ATR objective of 11072 on 21/07. The 2 ATR target comes to 11222
  • NF confirmed a multi-day FA at 10533 on 06/07 and tagged the 1 ATR objective of 10742 on 06/07. The 2 ATR target is at 10950. This FA has not been tagged and is now positional support.
  • NF confirmed a FA at 10440 on 02/07 and tagged the 2 ATR objective of 10868 on 13/07. This FA has not been tagged and is now positional support.
  • NF confirmed a FA at 10172 on 29/06 and and the tagged the 2 ATR target of 10619 on 06/07. This FA has not been tagged and is now positional support.
  • The 18th June & 01st July Trend Day VWAPs of of 9957 & 10350  would be important support levels.
  • The settlement day Roll Over point (Jul) is 10240
  • The VWAP & POC of Jun Series is 10110 & 10110 respectively.
  • The VWAP & POC of May Series is 9183 & 9109 respectively.
  • The VWAP & POC of Apr Series is 8999 & 9010 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 11069-11125-11143

Main Hypos for 23.07.2020:

a) NF needs to sustain above 11130 & sustain for a rise to 11176-195 / 11222-245 & 11268-280
b)The auction below 11098 can test lower levels of 11069-040 / 11022-010 & 10967*-940

Extended Hypos:
c) Above 11280, NF can probe higher to 11304-317 / 11350 & 11400-439
d) If 10940 is taken out, NF could fall to 10913-896 / 10872-834 & 10810*-798


BankNifty Jul F: 22804 [ 23148 / 22574 ]
HVNs – 21000 / 21345 / 21430 / / 21723 / 21840 / 22180 / 22720 / 22806

Click here to view the MP Lite chart of the latest profile of BNF

Previous day’s report ended with this ‘Value for the day was once again completely higher with the close also well away from the VAH indicating strong uptrend still in place

BNF continued the strong uptrend as it opened with yet another gap up of above 300 points making it a hat-trick this week almost tagging the VPOC of 23160 as it made a high of 23148 in the opening minute but was swiftly rejected as it not only got back into previous day’s range but almost completed the 80% Rule in the Value as it made a low of 22625 in the ‘A’ period taking support at yesterday’s lower part of the consolidation zone. The auction then made a slow probe higher over the next 6 periods as it once again got above PDH in the ‘H’ period but was once again met with aggressive supply as it left a PBH at 22963 triggering a fresh leg to the downside as it went on to make multiple REs lower but marginal ones as it hit 22573 taking support just above yVAL and this led to a small short covering bounce into the close to 22873 leaving a ‘b’ shape profile not just for the day but also on the 2-day composite indicating long liquidation right in the zone where initiative selling was seen from 8th to 10th July 2020. It remains to be seen if this supply gets absorbed this time around or the auction turns lower once again marking an end to the upmove which started last week after it made a low of 21025 as it has been building highest volumes for this series at 22806.

  • The BNF Open was a Open Rejection Reverse – Down (ORR)
  • The Day type was a Normal Day (‘b’ shape profile)
  • Largest volume was traded at 22850 F
  • Vwap of the session was at 22762 with volumes of 71.7 L and range of 575 points as it made a High-Low of 23148-22574
  • BNF confirmed a FA at 20901 on 29/06 and the tagged the 2 ATR target of 22625 on 07/07. This FA has not been tagged and is now positional support.
  • The 18th June & 01st July Trend Day VWAPs of 20494 & 21650 would be important support levels.
  • The settlement day Roll Over point (Jul) is 21430
  • The VWAP & POC of Jun Series is 20918 & 21000 respectively.
  • The VWAP & POC of May Series is 18767 & 19633 respectively.
  • The VWAP & POC of Apr Series is 19605 & 19710 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 22700-22850-22902

Main Hypos for 23.07.2020:

a) BNF needs to sustain above 22820 for a rise to 22902-975 / 23010-100 / 23160*-230 & 23313-370
b) The auction accepting below 22762 could test 22686-650 / 22569 / 22454-340* & 22278-170

Extended Hypos:

c) Above 23370, BNF can probe higher to 23440-510 / 23580-630 / 23700 & 23820-856
d) Breaking below 22170, there could be a fall to 22100 / 21980-930 / 21885-827 & 21723*

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