Market Profile Analysis dated 23rd July 2020

Nifty Jul F:  11207 [ 11228 / 11097 ]

HVNs – 10190 / 10293 / 10475 / 10570 / 10728 / 10764 / 11135

Previous day’s report ended with this ‘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

NF opened at the POC of the 2-day balance with the lowest opening volumes of the series to give an OAIR (Open Auction In Range) start but left a buying tail in the IB (Initial Balance) from 11129 to 11097 as it made a high of 11153 in the ‘A’ period leading to an inside bar in the ‘B’. The auction then made a marginal C side extension to the upside which for once was accepted leading to a fresh RE in the ‘D’ period as it left an extension handle around the 2-day composite VAH of 11163 which indicated initiative buying after which NF went on complete the 2 IB objective in the ‘G’ period as it made a high of 11219 almost tagging the 2 ATR target from Monday’s FA of 10921 which was at 11222. Having hit the 2 IB early in the day, the auction gave a retracement to VWAP in the ‘H’ period which was defended as it left a PBL of 11179 which meant that the buyers were still present and made a fresh probe higher over the next 2 periods as it made new highs of 11228 in the ‘J’ period. However, NF could not sustain these new highs and the late buyers were forced to exit in yet another probe to the VWAP in the ‘K’ period as the earlier PBL was broken but it took support just above the morning extension handle to leave a new PBL of 11171 before closing the day just above the dPOC of 11200 leaving a ‘p’ shape profile for the day which means short covering. Volumes for the day were the lowest of the series which means the demand is drying up and NF would need fresh buying to come in above 11222 to continue any higher. On the downside, staying below 11200 in the next session could lead to a probe lower for a revist of that FA at 10921 over the next couple of sessions.

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 – Up (NV)
  • Largest volume was traded at 11200 F
  • Vwap of the session was at 11182 with volumes of 99.3 L and range of 131 points as it made a High-Low of 11228-11097
  • NF confirmed a FA at 10921 on 20/07 and tagged the 2 ATR objective of 11222 on 23/07. This FA is currently on ‘T+4’ Days
  • 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 11172-11200-11223

Main Hypos for 24.07.2020:

a) NF needs to sustain above 11220 for a rise to 11245 / 11268-280 / 11304-317 & 11350
b)The auction below 11200 can test lower levels of 11172 / 11135-121 / 11090 & 11066

Extended Hypos:
c) Above 11350, NF can probe higher to 11400 / 11442 / 11465-485 & 11503-535
d) If 11066 is taken out, NF could fall to 11022-010 / 10967*-940 / 10921-913 & 10880


BankNifty Jul F:  23095 [ 23140 / 22703 ]
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 ‘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

BNF also made an OAIR start but importantly stayed above the 2-day composite POC of 22686 as it made a narrow IB range of just 197 points from 22703 to 22900 making a double inside bar in the ‘C’ period of just 75 points. The auction then made a RE to the upside in the ‘D’ period which led to a probe into the previous day’s selling tail of 22963 to 23148 as it completed the 2 IB objective of 23097 while making a high of 23140 in the ‘J’ period but could not scale above PDH. This led to a move lower in the ‘K’ period briefly breaking below VWAP but saw a return of demand resulting in a PBL at 22940 after which the auction tagged 23130 once again before closing the day at 23095. Value for the day was completely higher though range wise BNF has formed an inside day and will need to get accepted above this week’s high of 23148 for a fresh move on the upside. On the downside, today’s POC of 23027 would be the immediate reference below which 22961-916 would be the support zone which if fails to hold can lead to the test of the HVNs at 22800 & 22680.

  • 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 23027 F
  • Vwap of the session was at 22961 with volumes of 56.7 L and range of 437 points as it made a High-Low of 23140-22703
  • 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 22909-23027-23120

Main Hypos for 24.07.2020:

a) BNF needs to sustain above 23120 for a rise to 23160*-230 / 23313-370 / 23414-440 / 23510 & 23630
b) The auction accepting below 23100 could test 23027 / 22961-916 / 22820-777 & 22686-623 & 22569

Extended Hypos:

c) Above 23630, BNF can probe higher to 23700 / 23820-856 / 23991 / 24100 & 24265
d) Breaking below 22569, it could fall to 22454-340* / 22278-170 / 22080 & 21980-930

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