Market Profile Analysis dated 22nd September 2020

Nifty Sep F:  11162 [ 11292 / 11103 ]

NF opened slightly higher but could not get above the Neutral Extreme reference of 11324 as it got stalled at 11292 from where it resumed the imbalance seen since yesterday afternoon and it not only broke below PDL (Previous Day Low) but also took out the series low of 11202 (which was also a FA that had not been tagged) in the A period itself which led to another quick 100 point drop to 11103 in the IB (Initial Balance) as it left the largest IB range in over 4 months of 189 points. The imbalance then made way for a balance for the rest of the day as the auction remained in the IB forming a nice Gaussian profile with a close just below the prominent POC of 11176. Value was completely lower hence the PLR (Path of Least Resistance) remains on the downside with 11202 & 11255 being the supply points for the coming session(s).

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

  • The NF Open was a Open Drive (Down) (OD)
  • The Day type was a Normal Day (Gaussian Profile)
  • Largest volume was traded at 11176 F
  • Vwap of the session was at 11177 with volumes of 171.2 L and range of 189 points as it made a High-Low of 11292-11103
  • 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 11202 on 02/09 and tagged the 2 ATR objective of 11470 on 11/09. This swing support was broken on 23/09 and will now be a probable supply point.
  • 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 11139-11176-11199

HVNs – 11400 / 11448 / 11485 / 11555 / 11664

Main Hypos for 23.09.2020:

a) NF needs to sustain above 11176 for a rise to 11202-230 / 11255-283 & 11301-325
b) The auction staying below 11150 could test 11130-113 / 11085-040 & 11004

Extended Hypos:
c) Above 11325, NF can probe higher to 11354-365 / 11395-402 & 11428-440
d) If 11004 is taken out, NF could fall to 10987-953 / 10923 & 10892*-882


BankNifty Sep F:  21183 [ 21517 / 20967 ]

BNF made an Open Auction start as it made a probe below PDL in the A period but did not find fresh supply which was also marked by similar lows of 21190 & 21202 in the first 2 TPOs after which the auction probed higher getting back into previous day’s range as it went on to make a high of 21516 in the ‘B’ period. The auction then formed a balance in the IB for most part of the day with a minor RE (Range Extension) lower in the ‘G’ period where it made new lows of 21157 but once again did not see any big selling and made a rotation back up to 21476 in the ‘J’ period which was also the start of the small tail at top and this late afternoon rejection led to a fresh RE to the downside as BNF made new lows of 20967 in the K period but saw some profit booking as it left a tail at lows from 21050 to 20967 to get back to the IB almost tagging the VWAP as it hit 21259 before closing the day at 21183 leaving a nice balanced profile for the day with lower Value and a prominent POC at 21330 which will be the reference for the next session.

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

  • The BNF Open was a Open Auction (OA)
  • The Day type was a Normal Variation Day – Down (NV)
  • Largest volume was traded at 21330 F
  • Vwap of the session was at 21279 with volumes of 92.5 L and range of 549 points as it made a High-Low of 21516-20967
  • 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 21202-21330-21430

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

Main Hypos for 23.09.2020:

a) BNF needs to sustain above 21185 for a rise to 21240-320 / 21380-440 / 21523-575 / 21655-692 & 21742-780
b) The auction staying below 21175 could test 21096-030 / 20980 / 20882 / 20795-690 & 20589

Extended Hypos:

c) Above 21780, BNF can probe higher to 21838-890 / 21950-985 / 22050-125 / 22185-220 & 22300-392*
d) Breaking below 20589, it could fall to 20496-445 / 20391-319 / 20261-220 / 20139-040 & 19975

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