Market Profile Analysis dated 24th August 2020

Nifty Aug F:  11474 [ 11516 / 11410 ]

NF opened higher above the prominent POC of 11395 and not only got accepted in Friday’s selling tail but went on to probe above it as it made a high of 11444 in the IB leaving a 4th consecutive sub-40 point range in the first hour and remained in this narrow range till the ‘E’ period forming a ‘p’ shape profile. The auction then made a small Range Extension in the ‘F’ period and followed it up with a bigger RE in the ‘G’ period as it left couple of extension handles at 11444 & 11454 and scaled previous week’s high & FA of 11466 as it made a high of 11491 completing the 2 IB objective for the day. NF went on to make another big RE in the ‘K’ period as it tagged the 3 IB objective of 11514 and saw good profit booking at these levels as it left a small tail at top from 11516 to 11500 and made a retracement to the day’s VWAP of 11465 before closing near the HVN of the day’s upper distribution of 11484. The week has started with a DD (Double Distribution) Trend Day so is expected to continue higher as long as 11465 & 11430 are held.

Click here to view the NF give a DD after a hat-trick of Neutral Profiles on MPLite

  • The NF Open was a Open Auction (OA)
  • The Day type was a Double Distribution Trend Day – Up (DD)
  • Largest volume was traded at 11430 F
  • Vwap of the session was at 11465 with volumes of 82.7 L and range of 107 points as it made a High-Low of 11516-11410
  • NF confirmed a FA at 11466 on 19/08 and tagged the 1 ATR objective of 11317 on 20/08. This FA got revisited in ‘T+3’ Days and is no longer a valide reference.
  • NF confirmed a new FA at 11360 on 20/08 and the 1 ATR objective comes to and 11219. This FA was negated on 21/08 and has tagged the 1 ATR target of 11501 on the upside on 24/08.
  • The settlement day Roll Over point (Aug) is 11095
  • The VWAP & POC of Jul Series is 10897 & 10803 respectively.
  • The VWAP & POC of Jun Series is 10110 & 10110 respectively.
  • The VWAP & POC of May Series is 9183 & 9109 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 11421-11430-11482

HVNs – 10918 / 10970 / 11095 / 11196 / 11310

Main Hypos for 25.08.2020:

a) NF needs to sustain above 11485 for a rise to 11510 / 11541-587 & 11615-631*
b) The auction staying below 11475 could fall to 11455-430 / 11410-395* & 11360-328

Extended Hypos:
c) Above 11631, NF can probe higher to 11675-698 / 11721-734* & 11764
d) If 11328 is taken out, NF could fall to 11305* / 11270-230* & 11193-187


BankNifty Aug F:  22826 [ 22945 / 22327 ]

BNF also opened higher making an OL (Open=Low) start right at the base of Friday’s selling tail which indicated initiative buyers right at the open as it drove higher to big IB of 345 points scaling above previous week’s high & FA of 22466 while tagging the weekly VPOC of 22670 as it left a long buying tail from 22579 to 22327. The auction then made a marginal RE on the upside in the ‘D’ period and followed it up with a big one in the ‘F’ period as it left an extension handle at 22692 and made OTF higher till the ‘H’ period as it made a high of 22875. BNF then gave a retracement to 22766 in the ‘J’ period leaving a PBL (Pull Back Low) and went on to make new highs for the day at 22945 in the ‘K’ period where similar to NF, it saw longs booking out as it left a small tail at top before closing around the dPOC of 22810 leaving a DD profile.

Click here to view the Normal Day leading to a Trend Day in BNF on MP Lite

  • The BNF Open was a Open Drive – Up (OD) [on lower volumes]
  • The Day type was a Double Distribution Trend Day – Up (DD)
  • Largest volume was traded at 22810 F
  • Vwap of the session was at 22741 with the lowest volumes of this series at 50 L and range of 618 points as it made a High-Low of 22945-22327
  • BNF confirmed a FA at 22466 on 19/08 and tagged the 1 ATR target of 21968 on 20/08. This FA got revisited in ‘T+3’ Days and is no longer a valide reference.
  • BNF confirmed a new FA at 22090 on 20/08 and the 1 ATR objective comes to and 21607. This FA was negated on 21/08 as has tagged the 1 ATR target of 22573 on the upside on 24/08.
  • The settlement day Roll Over point (Aug) is 21615
  • The VWAP & POC of Jul Series is 22163 & 22087 respectively.
  • The VWAP & POC of Jun Series is 20918 & 21000 respectively.
  • The VWAP & POC of May Series is 18767 & 19633 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 22651-22810-22919

HVNs – 21545 / 21615 / 22188

Main Hypos for 25.08.2020:

a) BNF needs to sustain above 22865 for a rise to 22920-965 / 23000*-149 / 23230-269 / 23313 & 23399-432
b) The auction accepting below 22820 could test 22740 / 22692-640 / 22580-550 / 22465-350 & 22280*-240

Extended Hypos:

c) Above 23432, BNF can probe higher to 23510 / 23580-630 / 23700-787 / 23820-872 & 23991
d) Breaking below 22240, it could fall to 22194-155 / 22090-033 / 21984*-923 / 21860-780 & 21744-660

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