Market Profile Analysis dated 25th Feb

Nifty Feb F:

NF opened above the PDH (Previous Day High) and making a high of 10840 getting above the previous week’s high of 10833 also at open but could not sustain and was rejected back into previous day’s range as it broke below VWAP and entered Friday’s Value and tagging the prominent yPOC of 10804 in the ‘A’ period. The ‘B’ period made an identical low at 10802 but the auction was not able to sustain below that yPOC of 10804 which was an indication that the sellers are not doing a good job. (Click here to view the profile chart for better understanding) NF then made a small balance between VWAP & PDH for the next 3 periods making higher highs & higher lows after which in the ‘F’ period the auction first took a dip to VWAP breaking the sequence of higher lows making a low of 10816 which was swiftly defended and NF then went on to probe above IBH making new highs at 10843 making an outside bar on 30 minutes. NF then balanced in the ‘G’ period making a narrow inside bar but resumed the upside probe ‘H’ period onwards and from there started a new trending move higher into the close as NF tagged the vPOC of 10876 plus completing the 2 IB range extension of 10878 in the ‘L’ period. NF gave a spike close from 10873 to 10896 which will be the zone to watch at open in the next session.

• The NF Open was a Open Rejection Reverse (Down) which failed
• The day type was a Normal Variation Day (Up) (with a Spike close)
• Largest volume was traded at 10820 F
• Vwap of the session was at 10838 with volumes of 87.7 L in a session which traded a High-Low range of 10897-10802 for a range of 95 points
• NF confirmed a multi-day FA at 10946 on 12/02 and completed the 2 ATR move down of 10699. This FA has not been tagged and could now act as strong resistance
• NF had left a FA at 10580 on 26/12 & completed the 2 ATR move up to 10862. This FA has not been tagged and is now strong support
• The Trend Day VWAP & POC of 06/02 11046 & 11035 was broken on 08/02 and the closed below them so now they are no longer support levels
• The Trend Day VWAP & POC of 31/01 is at 10793 & 10775
• The VWAP & POC of Jan Series is 10795 & 10823 respectively.
• The VWAP & POC of Dec Series is 10796 & 10741 respectively.
• The VWAP & POC of Nov Series is 10480 & 10580 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 10809-10820-10862

Hypos / Estimates for the next session:

a) NF closed in a spike of 10873 to 10897 so spike rules will come into play at open
b) Staying above 10873-887, NF can probe higher to tag 10905-914 and the pull back high of 10927
c) Below 10873, the auction can move lower to test 10857 and 10835-830
d) Above 10927, NF could move to higher levels of 10946 and above it can tag 10963-974
e) On the downside, NF gets weak below 10830 and can fall to 10809-802 and 10785-782

BankNifty Feb F:

BNF opened with a small gap up and stayed above that prominent POC of 26940 indicating that the Friday’s profile was just a long liquidation profile and that there were no new sellers as the auction probed higher and sustained above Friday’s Value which was a bullish sign. The ‘B’ period made an inside bar and dip below yVAL was rejected as BNF confirmed singles from 26997-26937 which implied that it had left a vPOC lower at 26940 and this indicated that the PLR would be to the upside towards the higher vPOCs of 27090 & 27335. (Click here to view the profile chart for better understanding) BNF then got stuck in a 19 point range in the ‘C’ period making a narrow inside bar after which it started a trending move higher as the auction remained above VWAP and was making a ‘p’ profile for the day as it could not get above IBH till the ‘G’ period. The ‘H’ period saw BNF getting above IBH making new highs for the day as it tagged the PDH and continued to probe higher hitting the first vPOC of 27090 on the upside in the ‘I’ period. The auction then gave a pull back below the IBH of 27065 in the ‘J’ period to make a low of 27052 after which it trended higher into the close as the ‘L’ period made the highest range for the day rising from a low of 27085 to post day high of 27209 completing the 2 IB range extension on the upside. BNF has closed in a spike of 27117 to 27209 which will be the zone to watch at open in the next session.

• The BNF Open was a Open Auction In Range (OAIR)
• The day type was a Normal Variation Day (Up) (‘p’ profile with a Spike)
• Largest volume was traded at 27050 F
• Vwap of the session was at 27067 with volumes at 17.7 L in a session which traded a High-Low range of 27209-26950 for a range of 259 points
• BNF confirmed a multi-day FA at 26700 on 20/02 and tagged the 1 ATR move up at 26994. The 2 ATR move up comes to 27288.
• BNF confirmed a FA at 27384 on 12/02 and tagged the 2 ATR move down at 26736 on 15/02. This FA is now strong resistance.
• BNF confirmed a FA at 27716 on 23/1 and completed the 2 ATR move down hence is now strong resistance
• The VWAP & POC of Jan Series 27236 & 27514 respectively. The auction has closed below both of them.
• The VWAP & POC of Dec Series 26713 & 26832 respectively.
• The VWAP & POC of Nov Series 25686 & 26218 (Spot) 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 27000-27050-27114

Hypos / Estimates for the next session:

a) BNF closed in a spike of 27117 to 27209 so spike rules will come into play at open
b) Above 27200-210, BNF can move higher to 27268-288 and tag the vPOC of 27335
c) Acceptance below 27125-107 can bring lower levels of 27050-32 and 26997-985
d) A move above 27335 could see the auction tag levels of 27384-391 and 27430
e) BNF gets weak below 26985 for a probe lower to the vPOC of 26940 and 26885

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