Market Profile Analysis dated 24th July 2020

Nifty Jul F:  11170 [ 11199 / 11062 ]

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

Previous day’s report ended with this ‘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

NF opened with a gap down for the first time this week confriming that the trade facilitation was getting poorer at highs and that the auction needed to find fresh demand as it started with an OL (Open=Low) at 11094 but could not get back into previous Value as it made a high of 11148 in the IB (Initial Balance). The auction then reversed the probe to the downside as it made a minor C side RE (Range Extension) and followed it up with a lower low in the ‘D’ period as it tagged 11062 but this also marked the end of the OTF (One Time Frame) move lower since open. NF then left a PBH (Pull Back High) at VWAP in the ‘E’ period where it hit 11106 and this rejection from VWAP should have ideally got in new lows but that was not to be as a higher low at 11067 got confirmed in the ‘I’ period and this led to a big short covering probe higher as the auction went on to make new highs for the day confirming a Neutral profile as it hit 11199 in the ‘J’ period before closing the day at 11170.

Value for the day was completely lower though the close was way above the VAH as NF has been forming a balance over the last 4 days with the composite Value at 11090-11123-11176 and has a good chance to move away from this balance in the coming session(s).

Click here to view the MP Lite chart of the 4-day composite in NF

  • The NF Open was a Open Auction (OA)
  • The Day type was a Neutral Day (NeuD)
  • Largest volume was traded at 11120 F
  • Vwap of the session was at 11119 with volumes of 136.1 L and range of 137 points as it made a High-Low of 11199-11062
  • 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+5’ 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 11069-11120-11134

Main Hypos for 27.07.2020:

a) NF needs to sustain above 11175 for a rise to 11200-214 / 11245 / 11268-280 & 11304-317
b)The auction below 11170 can test lower levels of 11145-122 / 11090-058 & 11022

Extended Hypos:
c) Above 11317, NF can probe higher to 11350 / 11400-442 & 11465
d) If 11022 is taken out, NF could fall to 10967*-940 / 10921-913 & 10880


BankNifty Jul F:  22611 [ 22901 / 22321 ]

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 ‘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

BNF not only opened lower with a big gap down of 245 points but also confirmed an ORR (Open Rejection Reverse) start as it was rejected from just below yVAL and this initiative activity led to the test of Monday’s VPOC of 22340 as the auction trended lower for the first half of the day as it made lows of 22321 in the ‘G’ period. BNF found support at this VPOC as it left a small buying tail at lows from 22321 to 22345 which set up the second half of the day for a short covering bounce and this led to a test of the morning initiative selling tail as the auction left a PBH at 22725 before closing the day around the dPOC of 22620 leaving a ‘b’ shape profile for the day.

  • The BNF Open was a Open Rejection Reverse – Down (ORR)
  • The Day type was a Normal Variation Day – Down (NV)
  • Largest volume was traded at 22620 F
  • Vwap of the session was at 22536 with volumes of 67.3 L and range of 580 points as it made a High-Low of 22901-22321
  • 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 22466-22620-22729

Main Hypos for 27.07.2020:

a) BNF needs to sustain above 22620 for a rise to 22685-729 / 22811-850 / 22918-970 / 23027 & 23160-230
b)The auction accepting below 22607 could test 22536-452 / 22344 / 22278-244 / 22170-080 & 21980

Extended Hypos:

c) Above 23230, BNF can probe higher to 23313-370 / 23414-510 / 23580-630 & 23700-856
d) Breaking below 21980, it could fall to 21930-885 / 21827-723 / 21645-570 / 21514-430 & 21360

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