Market Profile Analysis dated 29th September 2023

Nifty Oct F: 19709 [ 19794 / 19638 ]

NF made an OAIR start and stayed above the yPOC of 19640 as it made a low of 19638 and probed higher and tagged 19700 in the B period stalling right below the Trend Day VWAP of 19701 leaving a narrow 62 point range Initial Balance with tails at both ends after which the C side made a rare inside bar.

The auction then tested the A period singles in the D TPO getting rejected at 19655 and formed an outside bar closing around the highs indicating demand coming back which was further confirmed in the E period with an extension handle at 19700 and this move above yVWAP triggered a short covering squeeze negating the selling extension handles of 19752 & 19765 while recording a high of 19769 and made marginal new highs of 19771 in the F stopping just below the weekly POC of 19772 indicating a pause on the upside.

A small retracement to 19735 saw some buying coming back in the H period as NF confirmed a PBL there and seemed ready for a spike higher into the close but the J for Joker played out it’s card in form of a fake break out leaving an extension handle at 19771 and making a look up above the Business Area of 19780 as it hit 19794 but could not sustain and suprisingly the all important K TPO remained in a narrow range of just 19 points hinting that buyers were folding up.

The L period then triggered a quick liquidation break by the laggard longs once 19771 got negated as it not only broke below the PBL of 19735 and day’s VWAP of 19725 but went on to make a low of 19685 before getting back to VWAP into the close leaving a Double Distribution type of a profile which was completely inside previous range but formed overlapping to higher Value. Today’s dPOC shifted higher to 19750 which means that the early longs have booked profits so will needs fresh buying above the 2 references of 19725 & 19750 to continue the probe higher whereas on the downside, today’s PBLs of 19685 & 19655 will be the initial support levels with the HVN of 19635 being the all important marker as the new series gets underway.

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Business Areas for 03rd Oct 2023

BankNifty Oct F: 44847 [ 44998 / 44620 ]

BNF opened with a gap up of 175 points but made an OH (Open=High) start at 44780 and probed lower testing the yPOC of 44680 while making a low of 44620 in the A period where it got good demand coming back as it not only got back above the day’s VWAP but went on to leave an extension handle at 44780 to make new highs of 44894 in the B TPO leaving an A period tail from 44762 to 44620.

The auction then made a typical C side extension to 44922 which gto rejected resulting in a probe below day’s VWAP as it went on to test the A period singles but left a PBL at 44759 indicating buyers defending this zone and made a fresh RE in the E period but ended up leaving similar highs at 44950 in the F signalling a bit of selling presssue.

BNF made another rotation below the day’s VWAP in the I period but left a higher PBL at 44833 after which it made couple of fresh REs in the J & K periods making new highs of 44998 but got stalled right below 27th Sep’s J TPO POC of 45000 where the sellers have been adding triggering a drop down to 44812 into the close leaving a ‘p’ shape profile for the day which was an inside bar in terms of range but has formed completely higher Value.

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Business Areas for 03rd Oct 2023

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