Market Profile Analysis dated 26th October 2020

Nifty Oct F: 11778 [ 11950 / 11712 ]

The hat-trick of Neutral Days led to a trending move in NF as it made an OTD (Open Test Drive) Down breaking below previous day’s low with ease in the ‘A’ period as it went on to leave an initiative selling tail from 11903 to 11950 in the IB (Initial Balance) to set up a Double Distribution (DD) Trend Day. The auction left couple of extension handles at 11872 & 11807 as it completed the 3 IB objective of 11716 and in the process went below previous week’s low of 11767 and saw some good profit booking into the close as it gave a retracement to 11790. NF would need to stay above the lower HVN of 11785 in order to fill up the low volume zone of today’s DD profile with the series POC of 11890 acting like a magnet for the coming session(s).

Click here to view the hat-trick of Neutral Days leading to a Trend Day in NF on MPLite

  • The NF Open was a Open Test Drive – Down (OTD on lower volumes)
  • The Day type was a Double Distribution Trend Day – Down (DD)
  • Largest volume was traded at 11890 F
  • Vwap of the session was at 11808 with volumes of 120.1 L and range of 238 points as it made a High-Low of 11950-11712
  • NF confirmed a FA at 12017 on 21/10 and tagged the 2 ATR objective of 11742 on the 27/10. This FA is currently on ‘T+4’ Days.
  • NF had confirmed a FA at 10857 on 25/09 and tagged the 2 ATR objective of 11165 on 28/09. This FA has not been tagged and is now positional support.
  • The settlement day Roll Over point (Oct) is 10830
  • The VWAP & POC of Sep Series is 11353 & 11560 respectively.
  • The VWAP & POC of Aug Series is 11311 & 11311 respectively.
  • The VWAP & POC of Jul Series is 10897 & 10803 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 11773-11890-11914

HVNs – 10962 / 11220* / 11425 / 11590 / 11740 / 11890* / 11942

Hypos for 27.10.2020:

a) NF needs to sustain above 11785 for a rise to 11821-865 / 11890-920 / 11952-985 & 12012
b) The auction staying below 11772 could test 11745 / 11715-680 / 11655-640 & 11590-550


BankNifty Oct F:  24109 [ 24550 / 23850 ]

BNF did not give an initiative move away from the POC of the 2-day Gaussian profile as expected at open but formed a narrow IB of just 190 points getting accepted below that POC and made a late RE (Range Extension) lower in the ‘E’ period which triggered a big fall as the auction not only completed the 3 IB target of 23980 but went on to make lows of 23850 where it took support for the day and bounced back to 24162 to leave a DD for the day. The extension handles of 24240 & 24360 would be the references on the upside above today’s VWAP of 24195 for the next session along with the day’s POC of 24480 and on the downside, BNF would get weaker if it gets accepted below 24099 for a probe towards the composite VPOC of 23751 & the daily VPOC of 23600.

Click here to view the 2-day balance leading to an imbalance in BNF on MPLite

  • The BNF Open was a Open Auction (OA)
  • The Day type was a Double Distribution Trend Day – Down (DD)
  • Largest volume was traded at 24480 F
  • Vwap of the session was at 24195 with volumes of 74.8 L and range of 700 points as it made a High-Low of 24550-23850
  • BNF had confirmed a FA at 20431 on 25/09 and tagged the 2 ATR objective of 21490 on 28/09. This FA has not been tagged and is now positional support.
  • The settlement day Roll Over point (Oct) is 20490
  • The VWAP & POC of Sep Series is 22320 & 22320 respectively.
  • The VWAP & POC of Aug Series is 22444 & 21595 respectively.
  • The VWAP & POC of Jul Series is 22163 & 22087 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 24045-24480-24542

HVNs – 20538 / 20822 / 21400* / 22090 / 22640* / 22890 / 23330* / 23730 / 24528*

Hypos for 27.10.2020:

a) BNF needs to sustain above 24126 for a rise to 24195-280 / 24330-395 / 24454-535 / 24632 & 24740-800
b) The auction staying below 24099 could test 24024 / 23940-875 / 23786-751 / 23600-540 & 23500-430

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