Market Profile Analysis dated 22nd Mar

Nifty Mar F:

After the narrow range day on Wednesday, NF was expected to give a large range today and it opened with a small gap up as it gave a Open Auction start negotiating around PDH advertising opportunity and in the process confirmed the multi-day FA at 11533 giving a signal that the PLR continues to be up as the ‘A’ period closed above the PDH after making a high of 11592. The ‘B’ period stayed in a very narrow range of just 10 points though it made a higher high at 11596 leaving singles from 11585 to 11553 along with a narrow IB of just 36 points. (Click here to view the profile chart for better understanding) The ‘C’ period broke below the lows of ‘B’ as well as VWAP getting back into the previous day’s range as soon as it started which was not a good sign and not only did it traverse through the entire singles but also went onto break the IBL with such might that it negated that multi-day FA of 11533 breaking below PDL (Previous Day Low) confirming an outside day & even completed the 2 IB extension down of 11524 all in the ‘C’ period itself as it made a low of 11504. The ‘D’ period continued the move lower & made a new low of 11496 completing a 100 point fall from the highs in just 60 minutes and this imbalance led to a balance being formed over the next 3 periods below VWAP and an attempt to get back above PDL was rejected in the ‘E’ period. The auction finally got above PDL & VWAP in the ‘H’ period as it made a high of 11545 but was not able to sustain above VWAP and another attempt in the ‘I’ period also saw rejection at exactly the same level of 11545 confirming exhaustion coming in the up move as ‘I’ also made an inside bar. The auction then resumed the move down in the ‘J’ period as it broke below ‘I’ and made a fresh range extension lower completing the 3 IB move lower as it made a low of 11477 and NF continued to move lower in the ‘K’ & ‘L’ periods as it made a low of 11451 as NF negated the FA of 11475 also closing below it leaving a Triple Distribution Trend Day Down.

• The NF Open was a Open Auction (OA)
• The day type was a Triple Distribution Trend Day – Down
• Largest volume was traded at 11532 F
• Vwap of the session was at 11521 with volumes of 124.1 L in a session which traded a High-Low range of 11596-11451 for a range of 145 points
• NF had confirmed a multi-day FA at 11533 at open today but got negated it & the 1 ATR move lower from the FA comes to 11438
• NF confirmed a FA at 11475 on 19/03 and tagged the 1 ATR of 11580. This FA was tagged today at ‘T+2’ days
• The Trend Day VWAP & POC of 22/03 at 11532 & 11521 will now be the immediate resistance levels for the series.
• The Trend Day VWAP & POC of 11/03 at 11165 & 11170 is important support levels for the series.
• The Trend Day VWAP & POC of 05/03 at 10946 & 10934 will be important levels for the series.
• The VWAP & POC of Feb Series is 10830 & 10856 respectively.
• The VWAP & POC of Jan Series is 10795 & 10823 respectively.
• The VWAP & POC of Dec Series is 10796 & 10741 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 11476-11532-11543

Hypos / Estimates for the next session:

a) NF has closed around the HVN of 11475 which will be the immediate level to watch
b) NF opening & staying below 11470 can bring lower levels of 11451 & 11438-436
c) Staying above 11475 at open, NF can probe higher to 11487-496 and 11521
d) If 11436 is broken, the auction can move down to 11420 & 11399-386
e) Above 11521, NF can tag higher levels of 11545 & 11560
f) Below 11386, NF can fall further to tag the weekly vPOC of 11361 and below that 11345-330

BankNifty Mar F:

BNF opened higher which meant that the previous day’s spike was accepted and found support above the yPOC of 29920 as it probed lower to make a low of 29940 in the opening minutes after which it stayed above PDH and went on to make highs of 30092 in the ‘A’ period. The ‘B’ period then made an inside bar staying in a narrow range of just 60 points leaving a buying tail at lows from 30026-29940. (Click here to view the profile chart for better understanding) The ‘C’ period had a OH start at 30032 and immediately broke into the buying singles which was a bearish sign and for once the ‘C’ side extension proved to be a huge one as the BNF fell by more than 250 points making a low of 29781 completing the 2 IB range extension lower. The auction continued the probe lower in the ‘D’ & ‘E’ periods as it made a low of 29720 taking support just above PDL of 29704 as the move down stalled & BNF began to make a balance. The next 2 periods were double inside bars staying inside ‘E’ after which the ‘H’ period attempted a probe higher getting above VWAP and tagged that yPOC of 29920 but was unable to get above it. The ‘I’ period made another attempt to get above 29920 but made similar highs which indicated selling pressure at this HVN & a signal that the auction may again turn down. BNF then started the probe down as the ‘J’ period broke below the inside bar of ‘I’ followed by the ‘K’ period making a fresh range extension lower as the auction broke below PDL and went on to make a low of 29626 completing the 3 IB move lower which continued in the ‘L’ period as BNF tagged the FA of 29585 while making a new low of 29572 completing a Triple Distribution Trend Day Down. BNF formed overlapping to lower Value for the first time in this series suggesting that the first step of IPM is done with and BNF could either form a balance or continue lower here on.

• The BNF Open Open was a Open Auction (OA)
• The day type was a Triple Distribution Trend Day – Down
• Largest volume was traded at 29810 F
• Vwap of the session was at 29825 with volumes at 34.3 L in a session which traded a High-Low range of 30092-29572 for a range of 520 points
• BNF confirmed a FA at 29585 on 19/03 and tagged the the 1 ATR target of 29944. This FA was tagged today at ‘T+2’ days
• The Trend Day VWAP & POC of 22/03 at 29810 & 29825 will now be the immediate resistance levels for the series.
• The Trend Day VWAP of 05/03 of 27380 will be important level for the series.
• The VWAP & POC of Feb Series 27042 & 26978 respectively
• The VWAP & POC of Jan Series 27236 & 27514 respectively
• The VWAP & POC of Dec Series 26713 & 26832 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 29648-29810-29923

Hypos / Estimates for the next session:

a) BNF has immediate support at 29626 below which it can tag 29564 & 29500
b) Immediate resistance is at 29660 above which the auction can probe higher to 29724-766 and 29800-825
c) Below 29500, BNF can move lower to 29433 and 29370
d) Sustaining above 29825, higher levels of 29872-885 and 29920-940 could be expected
e) If 29370 is taken out, BNF can fall to 29318-280 and 29216

For more tradeable ideas and intraday trading strategies based on MarketProfile and the OrderFlow live charts with OrderFlow analysis Live, subscribe to the trading room. The Vtrender Trading Room hosts India’s largest MarketProfile community live every trading session from 9.15 am to 3.30 pm.

If not a Trading Room member you can get immediate access at – https://in.explara.com/e/vtrender–trading–room/checkout