Market Profile Analysis dated 27th May 2020

Nifty May F:  9309 [ 9341 / 8988 ]

HVNs – (8964) / 9078 / 9212 / 9320

NF opened higher but was also an OH (Open=High) start at 9079 after which it probed lower as it seemed to move away from the 4-day composite with a close at lows of 8988 in the A period but could not extend any further leaving poor lows in the IB (Initial Balance) which was a sign that no fresh supply coming below the composite VAL of 9024. The auction then got back into the 4-day composite triggering the 80% Rule & once it scaled above VWAP of the day it made made a quick run up to the composite POC in form of a ‘C’ side extension as it made new highs for the day at 9099. The ‘D’ period made a marginal new high of 9116 after which NF remained in a narrow range for the next 2 periods but left an all important PBL (Pull Back Low) in the ‘E’ period at 9076 which was also the IBH of the day and once the auction made a fresh RE (Range Extension) in the ‘G period as it left an extension handle at 9116, there was a trending move of 225 points over the next 4 periods as NF made a high of 9341 leaving 3 more extension handles at 9147 / 9187 & 9223. This imbalance then led to a small balance being formed above 9250 in the last 3 periods as for the second month running we witnessed a Trend Day Up in NF just before the expiry day. The dPOC for the day which shifted higher to 9285 would be the first reference for the next session staying above which the expiry could be around the highs.

Click here to view how NF moved away from the 4-day composite on the upside after a failed attempt to move lower

  • The NF Open was a Open Aution In Range  (OAIR)
  • The day type was a Trend Day – Up (4 IB Day)
  • Largest volume was traded at 9284 F
  • Vwap of the session was at 9158 with volumes of 204.3 L and range of 353 points as it made a High-Low of 9341-8988
  • NF confirmed a multi-day FA at 8852 on 20/05 and tagged the 2 ATR objective of 9252 on 27/05. This FA is currently on ‘T+6’ days.
  • NF confirmed a multi-day FA at 9180 on 18/05 and almost tagged the 2 ATR objective of 8810 on the same day. This FA got hit on 27/05 which was the ‘T+7’ day and is no longer an important reference.
  • NF had confirmed a multi-day FA at 8706 on 09/04  and tagged the 2 ATR objective of 9756 on 30/04. This FA has not been tagged & is now important support.
  • The Trend Day VWAP of 9158 would be important support level.
  • The settlement day Roll Over point (May) is 9822
  • The VWAP & POC of Apr Series is 8999 & 9010 respectively.
  • The VWAP & POC of Mar Series is 9146 & 8592 respectively.
  • The VWAP & POC of Feb Series is 11944 & 12125 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 8988-9078-9251

Main Hypos for the next session:

a) NF needs to sustain above 9312-20 for a rise to 9340-56 / 9379-85 / 9400*-20 / 9444-75 / 9503-30 & 9555
b) The auction has immediate support at 9284 below which it could test 9268-50 / 9223-11 / 9187 / *9168-58* / 9125-16 & 9096-76

Extended Hypos:
c) Above 9555, NF can probe higher to 9574-94 / 9616-25 / 9653-70 / 9721-50 & 9774-81
d) Below 9076, the auction can fall further to 9033-16 / 8983-76 / 8945 / 8924-16 & 8888-52


BankNifty May F:  18663 [ 18863 / 17484 ]

HVNs – 17520 / (18800) / (19220) / 19600-620 / 19800

Neutral Days lead to Trend Days just like balance leads to imbalance which is exactly what happened in BNF today as it took support in the IB at yesterday’s prominent POC leaving poor lows with the lowest IB range in 3 months of just 144 points and then took off like a rocket from the ‘C’ period onwards as it left an extension handle at 17629 after which it not only negated the FA of 17690 but went on to complete the 1 ATR objective of 18420 in a manic ‘J’ period as it probed further up to tag the VPOC of 18800 while making a high of 18863 giving an almost 10 IB day with a range of 1379 points before closing the day at 18663. The auction has a small selling tail from 18740 to 18863 which would be the reference on the upside for the expiry session and on the downside we have immediate support at 18630 below which the HVN of 18504 would be the next reference.

  • The BNF Open was a Open Aution In Range  (OAIR)
  • The day type was a Trend Day – Up (9 IB Day)
  • Largest volume was traded at 17800 F
  • Vwap of the session was at 18094 with volumes of 105.4 L and range of 1379 points as it made a High-Low of 18863-17484
  • BNF confirmed a FA at 17690 on 26/05  and the 1 ATR target down was at 16929. This FA got negated on 27/05 and it went on to complete the 1 ATR target of 18420 on the upside on the same day. The 2 ATR objective is at 19151.
  • BNF confirmed a FA at 18175 on 21/05  and tagged the 1 ATR objective of 17407 on 22/05. The 2 ATR target comes to 16639. This FA got negated on 27/05 and is no longer a valid reference.
  • BNF confirmed a FA at 21932 on 30/04  and tagged not just the 1 ATR objective of 21028 but also the 2 ATR target of 20125 on 04/05. This FA has not been tagged and is now positional supply point.
  • The settlement day Roll Over point (May) is 21380
  • The VWAP & POC of Apr Series is 19605 & 19710 respectively.
  • The VWAP & POC of Mar Series is 22104 & 20248 respectively.
  • The VWAP & POC of Feb Series is 30692 & 30692 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 17486-17800-18335

Main Hypos for the next session:

a) BNF needs to sustain above 18684-700 for a rise to 18740-825 / 18882 / 18940-970 / 19080 / 19140*-170 / 19220**-278 & 19340-460
b) The auction has immediate support at 18630 below which it could test 18590-504 / 18432-362 / 18174 / *18094-78* / 18025 / 17984-932 & 17877

Extended Hypos:
c) Above 19460, BNF can probe higher to 19535 / 19590-620* / 19680-700 / 19780-835 / 19934-964 & 20022-120
d) Below 17877, lower levels of 17800-760 / 17710-690 / 17629-580 / 17520-484 / 17430-384 & 17262-185 could come into play

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