Market Profile Analysis dated 27th Mar 2020

Nifty Apr F:  8651 [ 9044 / 8525 ]

HVNs – 7900 / 8335 / 8560 / 8670

NF opened with a big gap up of more than 250 points and continued to probe higher as it made highs of 9038 in the ‘A’ period & followed it up with a marginal higher high of 9044 in the ‘B’ period indicating exhaustion at these new highs which led to a OTF move to the downside till the ‘E’ period as the auction not only closed the gap but went on to complete the 80% Rule in previous day’s Value as it made a low of 8563. Holding of the yVAL then led to a retracement to the VWAP in the ‘F’ period where NF left a PBH at 8775 getting rejected which meant that the sellers were in control of the day’s action. The auction then made a fresh leg to the downside as it made new lows of 8525 in the ‘I’ period but was swiftly rejected and left a small buying tail from 8563 to 8525 indicating that the downside for the day could be done. NF then probed higher and even scaled above the PBH of 8775 as it got above VWAP while making highs of 8799 where it left a new PBH before closing the day at 8651 leaving a ‘b’ shape profile for the day. NF has formed a nice 3-1-3 balanced profile on a 2-day composite with a prominent POC at 8670 (click here to view the chart) and could give a move away from this level in the session(s) to come.

  • The NF Open was a Open Auction Out of Range (OAOR)
  • The day type was a Normal Variation Day – Down (‘b’ shape profile)
  • Largest volume was traded at 8680 F
  • Vwap of the session was at 8744 with volumes of 255.8 L and range of 519 points as it made a High-Low of 9044-8525
  • NF confirmed a FA at 7521 on 24/03  and tagged the 2 ATR objective of 8595 on 26/03. This FA is currently on ‘T+4’ Days.
  • NF confirmed a FA at 9384 on 17/03  and tagged the 2 ATR move of 8613 on 18/03. This FA has not been tagged and is positional supply point.
  • The settlement day Roll Over point (Apr) is 8686
  • The VWAP & POC of Mar Series is 9238 & 11289 respectively.
  • The VWAP & POC of Feb Series is 11944 & 12125 respectively.
  • The VWAP & POC of Jan Series is 12178 & 12132 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 8540-8680-8806

Main Hypos for the next session:

a) NF needs to sustain above 8670-80 for a rise to 8720-51 / 8780-99 / 8816-50 / 8883 & 8912-50
b) The auction turns weak below 8630 and could test 8598 / 8560-44 / 8500-8464 / 8397 & 8350-35

Extended Hypos:
c) Above 8950, NF can probe higher to 8993 / 9025 / 9050-60 / 9087-9125 & 9150-60
d) Below 8335, the auction can fall further to 8290-75 / 8248 / 8211 / 8125-16 & 8080

Additional Hypos*:
e) Sustaining above 9160* could take NF to 9200-25 / 9270-95 / 9325-85 / 9412 & 9460-80
f) If 8080* is taken out, NF can start a new leg down to 8007-7999 / 7950 / 7896* / 7840-10 & 7770-43


BankNifty Apr F:  19778 [ 21273 / 19350 ]

HVNs – 19020 / 19700 / 19840

BNF also opened with a huge gap up of 900 points as it gave an OL (Open=Low) start at 20251 from just above the PDH as it went on to climb by another 1000 points while making highs of 21273 in the ‘B’ period but this triggered a quick long liquidation move as the auction broke below VWAP and as generally happens, VWAP break of an Open Drive triggered new lows for the day as BNF made similar lows of 19625 & 19616 in the ‘D’ & ‘E’ periods suggesting that the current leg to the downside is done. It then went on to test VWAP in the ‘F’ period and left a PBH at 20425 which meant that the supply was coming back and this led to a new leg lower over the next 3 periods as the auction made new lows of 19350 and was swiftly rejected at the yPOC to leave a small buying tail from 19564 to 19350 at lows. BNF then made VWAP test this time leaving a lower PBH of 20326 before closing the day around the dPOC of 19820 and like NF has left a nice 2-day 3-1-3 profile with Value at 19251-19835-20576.

Click here to view the MP Lite chart of the 2-day composite formed in BNF

  • The BNF Open was a Open Drive (Up) (OD) on low volumes which failed
  • The day type was a Normal Variation Day – Down (NV)
  • Largest volume was traded at 19820 F
  • Vwap of the session was at 20064 with volumes of 68.4 L and range of 1922 points as it made a High-Low of 21273-19350
  • The Trend Day VWAP of 18/03 at 20990 will be an important positional supply point in the days to come.
  • The settlement day Roll Over point (Apr) is 19380
  • The VWAP & POC of Mar Series is 25502 & 20302 respectively.
  • The VWAP & POC of Feb Series is 30692 & 30692 respectively.
  • The VWAP & POC of Jan Series is 31425 & 32104 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 19618-19820-20225

Main Hypos for the next session:

a) BNF needs to sustain above 19820-845 for a rise to 19950-967 / 20064-81 / 20130-180 / 20251 / 20326-350 & 20425
b) Staying below 19770, the auction could probe down to 19700-650 / 19600-564 / 19500 / 19416-380 / 19315-245 & 19170

Extended Hypos:
c) Above 20425, BNF can probe higher to 20496-520 / 20570-600 / 20715-795 / 20925 & 21000-095
d) Below 19170, lower levels of 19020-00 / 18935-885 / 18750-710 / 18670 / 18555 & 18435* could come into play

Additional Hypos*:
e) BNF if gets accepted above 21095* could start a new leg up to 21150 / 21250-280 / 21312-400 / 21460-480 / 21530 / 21600-634 & 21750
f) If 18435* is taken out, the auction can fall to 18370-340 / 18270-255 / 18199-163 / 18100-025 / 17950-920 & 17775

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