Market Profile Analysis dated 25th Jan

Nifty Jan F:

NF opened with a gap up above previous day highs and seemed to have got a drive up too as it opened with a OL start of 10900 and tagged the vPOC of 10944 making a high of 10955 in the first 10 minutes on good volumes. The auction also tagged the 1 ATR move of 10912 from yesterday’s FA of 10811 but then could not get above the weekly VAH of 10956 and the signals of a drive were negated as NF broke VWAP in the first period itself and though it did scale back above it in the ‘B’ period, it could only make an inside bar. NF broke below VWAP again in the ‘C’ period and stayed below it probing lower than ‘B’ thus indicating that the PLR has turned down. ‘D’ made an inside bar and gave a move to VWAP which was rejected and this was the defining moment for the day’s auction as from there NF trended lower all through the day with the distance from VWAP getting wider as the day progressed. There was a brief consolidation around the IBL when the ‘G’ period made an outside bar but once the lows were broken in the ‘I’ period, NF went on to give a big move lower first leaving an extension handle at 10885 along with singles at 10885-10840 and went on to break Thursday’s low & FA of 10811 and almost tagging that vPOC of 10760 as it made a low of 10761 completing a 3.5 IB range extension to the downside. NF closed in a spike down from 10820 to 10761 and spike rules will come into play on Monday open.

• • The NF Open was a Open Auction Out of Range
  • The day type was a Normal Variation Day (Down)
  • Largest volume was traded at 10920 F
  • Vwap of the session was at 10873 with volumes of 121.1 L in a session which traded a High-Low range of 10955-10761 for a range of 193 points 
  • NF confirmed a FA at 10811 on 24/01 and tagged the 1 ATR move up of 10912 today but closed below the FA so a 1 ATR move down of 10710 is on
  • NF confirmed a FA at 10962 on 23/01 and has tagged the 1 ATR level of 10858. Staying below it, NF can probe lower to the 2 ATR move of 10755 which was almost tagged on 25/01
  • NF had left a FA at 10678 on 04/01 and tagged the 1 ATR move of 10803 & closed above it. The 2 ATR target of 10928 was tagged on 15/01. This FA has not been tagged and is now strong support
  • 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 VWAP & POC of Dec Series 10796 & 10741 respectively
  • The VWAP & POC of Nov Series 10480 & 10580 respectively.
  • The VWAP & POC of 31/10 10250 & 10248 will be important levels going forward

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 10828-10920-10953

Hypos / Estimates for the next session:

a) NF has immediate support at 10760-751 and sustaining below it can probe lower to 10735-730 & 10711-705
b) Below 10705, the auction can move lower to test the FA of 10678 & 10651
c) Immediate resistance is at 10815 above which NF can tag 10828 & 10843
d) Above 10850, NF can target 10872-885 on the upside
e) NF has major resistance now at the extension handle of 10905

BankNifty Jan F:

BNF opened with a gap up and probed higher to make a high of 27480 in the first 10 minutes but was not able to sustain above the VAL of the composite from 7th Jan (27470) after which the auction started coiling between the previous day high of 27375 & 27465 making narrow range bars on 30 minutes but stayed below VWAP post IB. The ‘D’ period gave a probe to VWAP which got rejected thereby leaving a pull back high at 27448 after which BNF kept moving away from VWAP with the big break lower coming in the ‘I’ period when the auction got back into the previous day’s range indicating that the OAOR start could give a move back to test previous day’s low. BNF went on to break the IBL & trended lower into the close making big range bars leaving an extension handle at 27308 after which it went on to break the previous day lows of 27186 giving a spike down to make a low of 27067 before closing at 27144. Spike Rules will apply at open next session & the spike is from 27185-27067.

• The BNF Open was a Open Auction Out of Range
• The day type was a Normal Variation Day (Down)
• Largest volume was traded at 27440 F
• Vwap of the session was at 27307 with volumes of 24.1 L in a session which traded a High-Low range of 27480-27067 for a range of 413 points
• BNF confirmed a FA at 27611 on 23/1 and closed below the 1 ATR level (27382) so seems on for the 2 ATR move down to 27153 which was tagged today
• The VWAP & POC of Dec Series 26713 & 26832 respectively
• The VWAP & POC of Nov Series 25686 & 26218 (Spot) respectively
• 31st October’s VWAP of 24895 & POC of 24900 will be important levels going forward

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 27214-27440-27471

Hypos / Estimates for the next session:

a) BNF has immediate resistance at 27185-27200 above which it can probe higher to 27250-285
b) BNF remains weak below 27115 for a move lower to test the lows of 27067 & the vPOC of 27030
c) Above 27310, the auction can rise to 27380 & 27440
d) Below 27015, BNF can fall to 26923-910 and test the extension handle of 26870

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