Market Profile Analysis dated 29th Jan

Nifty Jan F:

NF gave a OAIR (Open Auction in Range) start yet again which was also inside previous day’s Value and tried to probe lower at open but got supported at yVAL of 10650 and from there reversed the auction which got back above VWAP and went on to make new highs of 10694 just below the yPOC of 10695 completing the first part of the 80% Rule but as it could not move above the POC of yesterday’s ‘b’ profile, the PLR turned down again and NF went on to test morning lows but again found support at yVAL in the ‘D’ period as it made a low of 10646. NF then started making the reverse trip from yVAL to yPOC and got back above VWAP to make a high of 10690 in the ‘G’ period but it swiftly got rejected from there and broke below VWAP making an outside bar on 30 minutes to close at lows and signalling an imbalance move. The next period ‘H’ trended lower breaking below the IBL leaving an extension handle at 10641 and went on to tag the vPOC of 10608 with a close at lows. ‘I’ period made lower lows of 10597 but closed higher indicating that a test of the extension handle may be on. ‘J’ & ‘K’ made almost similar range bars with 10635 stalling the move up but in ‘L’ period, NF got above that extension handle of 10641 and this triggered a big move into the closing 15 mins as NF made new highs of 10706 giving a Neutral Extreme Profile.

• • The NF Open was a Open Auction In Range
  • The day type was a Neutral Extreme Day (Up)
  • Largest volume was traded at 10625 F
  • Vwap of the session was at 10649 with volumes of 122.5 L in a session which traded a High-Low range of 10706-10597 for a range of 108 points 
  • NF confirmed a FA at 10962 on 23/01 and has completed the 2 ATR move down to 10755. This FA is currently on ‘T+5’ days
  • NF completed the 2 ATR move down of 10610 from the negated FA of 10811 today
  • 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. The auction broke below this FA again today but the close was around it
  • 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 10610-10625-10671

Hypos / Estimates for the next session:

a) NF has immediate support at 10670 and staying above it can tag 10708 & 10720
b) Below 10670, the auction can probe lower to 10650-641 & 10625
c) Sustaining above 10720, NF can probe higher to tag 10745-760
d) Below 10625, NF can fall to 10608 & test the extension handle of 26/12 at 10590
e) Above 10760, NF can move higher to 10790 & 10820

BankNifty Jan F:

BNF opened with a gap down of 90 points below the previous day low but immediately got back into previous day’s range probing higher and tagged the yPOC of 26780 in the ‘A’ period after which it started to balance in a narrow range of 100 points between 26680 to 26780 till the ‘F’ period giving a ‘p’ profile for the day. The ‘G’ period saw the auction attempt a move above IBH when it made a high of 26849 (which was in between the pull back high of 26827 & yesterday’s extension handle of 26868) but was swiftly rejected back into the IB leaving a probable FA at highs. The ‘G’ period went on to close below VWAP & this started a imbalance move down as ‘H’ broke into the morning singles of 26685-26611 and went on to make new lows for the day at 26570 not only confirming the FA at 26849 but also completing the 1 ATR move down of 26605 in the process. BNF then drifted lower in the next 3 periods making lower lows unable to sustain above IBL and looked like a close at lows was coming when BNF got rejected at VWAP just as the ‘L’ period was coming to a close but then the last 15 minutes saw a big move to the upside as BNF rallied from 26585 to 26760 leaving a Neutral Centre Day.

• The BNF Open was a Open Rejection Reverse (Up)
• The day type was a Neutral Centre Day
• Largest volume was traded at 26730 F
• Vwap of the session was at 26662 with volumes of 27.6 L in a session which traded a High-Low range of 26849-26520 for a range of 329 points
• BNF confirmed a FA at 26849 today and tagged the 1 ATR level of 26605 today itself but closed above it. A move below 26600 again could trigger the 2 ATR move down to 26361
• BNF confirmed a FA at 27611 on 23/1 and closed below the 2 ATR level of 27153 hence is now strong resistance
• The VWAP & POC of Dec Series 26713 & 26832 respectively, today’s close has been around the Dec VWAP
• 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 26609-26730-26765

Hypos / Estimates for the next session:

a) BNF has immediate support at 26660 below which it can tag 26590 and 26510
b) BNF needs to sustain above 26730 for a probe higher to 26780-800 and above it can test the FA of 26849
c) BNF has lower support at 26500 below which it can fall to 26440 & 26360
d) Above 26850, the auction can test higher levels of 26930 & 26995

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