Market Profile Analysis dated 28th Jan 2020

Nifty Jan F:  12068 [ 12162 / 12038 ]

HVNs – (11946-964) / 11994 / 12040 / 12062 / (12120-132) / 12189 / 12244 / 11272 / 12305

NF opened in the spike zone of 12151 to 12117 and made an attempt to break lower as it made lows of 12091 in the opening 10 minutes but was swiftly rejected as it not only got back into the spike zone but went on to scale above it in the ‘A’ period itself and made new highs of 12162 just as the ‘B’ period started but just like it got rejected from below the spike, the auction was not able to sustain above it and got back into the spike zone. NF then remained inside the IB (Initial Balance) and within a narrow range of 50 points forming a nice balance till the ‘I’ period filling up and forming Value in the previous day’s low volume area and once it completed this objective, the auction made a RE (Range Extension) to the downside in the ‘J’ period as it left an extension handle at 12091 and went on to make lower lows for the next 2 periods as NF tagged the VPOCs of 12062 & 12045 while making lows of 12038 before leaving a small tail at lows from 12053 to 12038 as it closed the day at 12068 forming lower Value for the second consecutive day this week. The extension handle of 12091 would be the reference to be taken out on the upside for a test of 12120-132 but the PLR (Path of Least Resistance) remains to the downside unless NF forms overlapping or higher Value in the coming session(s).

  • The NF Open was an Open Rejection Reverse – Up  (ORR) on low volumes
  • The day type was a Normal Variation Day – Down (NV) with a spike close yet again
  • Largest volume was traded at 12132 F
  • Vwap of the session was at 12112 with volumes of 99.6 L and range of 124 points as it made a High-Low of 12162-12038
  • NF confirmed a FA at 12319 on 15/01  and tagged the 1 ATR target of 12415 on 20/1. This FA was negated on 20/01 and the 2 ATR move down of 12127 got tagged on 22/01.
  • The 20th Jan Trend Day VWAP of 12308 would be important supply point.
  • The settlement day Roll Over point (Jan) is 12193
  • The VWAP & POC of Dec Series is 12087 & 12182 respectively.
  • The VWAP & POC of Nov Series is 11954 & 11910 respectively.
  • The VWAP & POC of Oct Series is 11461 & 11365 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 12082-12132-12160 

Hypos / Estimates for the next session:

a) NF has immediate supply at 12086-092 above which it could rise to 12120-135 & 12156
b) The auction gets weaker below 12056-053 and could fall to 12035-023 / 12005 & 11990-974
c) Above 12156, NF can probe higher to 12173-189* & 12210-213
d) Below 11974 auction could probe lower to 11956* / 11930-926 & 11904
e) If 12213 is taken out, the auction go up to to 12239-244* / 12268-272* & 12300-*308*
f) Break of 11904 can trigger a move lower to 11886-863 / 11848-843 & 11816*-810


BankNifty Jan F:  30771 [ 31070 / 30675 ]

HVNs – 30800 / 30952 / 31175 / 31326 / 31455 / 31525 / 31770 / 31840 / 31935

BNF tagged the 1 ATR objective of 30782 from previous day’s FA (Failed Auction) of 31240 at open as it made lows of 30775 and having met this target it gave a good bounce as it got back above the reference of 30850 to 30950 entering into previous day’s Value and even got above the HVN (High Volume Node) of 30984 looking set to tag the yPOC of 31100 when it made a high of 31051 in the IB (Initial Balance). However, the auction did not find any new demand and almost retraced this entire move up in the ‘C’ period as it made lows of 30810 from where it was once again pushed back swiftly into previous day’s range after which it stayed in a small range of 105 points from 30880 to 30985 for the next 4 periods. The ‘H’ period then saw some new action as BNF broke out of this narrow range and even went on to make a RE to the upside as it made new highs for the day at 31070 but once again found no new demand at these levels which led to a swift rejection back into the IB in the ‘I’ period followed by the break of VWAP in the ‘J’ period. The late afternoon break of VWAP generally leads to big liquidation and with a failed RE attempt the move can be even more swift as was seen in the next 2 periods when the auction made a successful RE to the downside in the ‘K’ period confirming yet another FA at 31070 and followed it up by a lower low in the ‘L’ period as it made lows of 30675 falling just short of the 1 ATR objective of 30636 from today’s FA. BNF gave a good bounce into the close as it tagged 30825 closing near the HVN of 30800 which would be the immediate reference for the next session.

  • The BNF Open was an Open Rejection Reverse – Up  (ORR) on low volumes
  • The day type was a Neutral Day (NeuD)
  • Largest volume was traded at 30924 F
  • Vwap of the session was at 30905 with volumes of 35.3 L and range of 395 points as it made a High-Low of 31070-30675
  • BNF confirmed a FA at 31240 on 27/01  and tagged the 1 ATR of 30782 on 28/01. The 2 ATR objective from this FA comes to 30325.
  • BNF confirmed a FA at 31070 on 28/01  and the 1 ATR target comes to 30636.
  • BNF confirmed a multi-day FA at 32260 on 14/01  and tagged the 2 ATR target of 31507 on 20/01. This FA has not been tagged and is now positional resistance.
  • BNF confirmed a FA at 32774 on 30/12 and tagged the 2 ATR target of 32142 on 03/01. This FA has not been tagged and is now positional resistance.
  • The 20th Jan Trend Day VWAP of 31396 would be important supply point. This was taken out on 24/01 briefly but closed below it indicating supply still prevalent in this zone.
  • The settlement day Roll Over point (Jan) is 32180
  • The VWAP & POC of Dec Series is 31956 & 32102 respectively.
  • The VWAP & POC of Nov Series is 30699 & 31100 respectively.
  • The VWAP & POC of Oct Series is 28784 & 28415 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 30765-30924-30974

Hypos / Estimates for the next session:

a) BNF needs to sustain above 30805 for a rise to 30850 / 30900-924 & 30966-974
b) The auction remains weak below 30770 for a move to 30710-705 / 30636-625 & 30580-560
c) Above 30974, BNF can probe higher to 31032-055 / 31095 & 31135-150
d) Below 30560, lower levels of 30500 / 30435-430 & 30350-325 could be tagged
e) If 31150 is taken out, BNF can give a fresh move up to 31200 / 31240-265 / 31326* & 30396-403
f) Break of 30325 could trigger a move down to 30281*-261 / 30201-190 & 30150-131

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