Market Profile Analysis dated 30th December 2020

Nifty Dec F:  13977 [ 13985 / 13871 ]

NF continued the trend of opening higher with the fourth consecutive gap up as it tagged the 2 ATR objective of 13983 from the FA of 13641 but was swiftly rejected from 13985 as it not only got back into previous day’s range but completed the 80% Rule in the well balanced Gaussian profile as it made a low of 13894 taking support just above the buying tail of 13888 to 13867 and all this action happening in the opening 15 minutes. The auction then consolidated in this big 90 point range as it got back into previous day’s Value but left similar highs of 13952 in the ‘D’ & ‘E’ periods indicating lack of demand and this led to a RE (Range Extension) lower in the ‘G’ period as NF got into yesterday’s buying tail and almost tagged the PDL (Previous Day Low) but once again saw demand coming back right at Monday’s VWAP of 13867. The ‘H’ period then got back above the IBL as the auction trended higher into the close completing the 80% Rule on the upside and went on to negate the A period selling tail completely as it matched the day highs of 13985 in the M period before closing the day at 13977. Value for the day was almost similar to previous day giving a nicely balanced 2-day composite at 13904-13931-13957 so can expect an imbalance on the upside with a good chance that the series which has been a trending one closes around the highs on the last trading day of 2020.

Click here to view the 2-day balance in NF on MPLite

  • The NF Open was a Open Rejection Reverse – Down (ORR)
  • The Day type was a Normal Day
  • Largest volume was traded at 13961 F
  • Vwap of the session was at 13937 with volumes of 98.9 L and range of 114 points as it made a High-Low of 13985-13870
  • NF confirmed a FA at 13641 on 24/12 and tagged the 2 ATR objective of 13983 on 30/12.
  • NF confirmed a FA at 13222 on 22/12 and tagged the 2 ATR objective of 13547 on 23/12. This FA is currently on ‘T+6’ Days.
  • The settlement day Roll Over point (Dec) is 12974
  • The VWAP & POC of Nov Series is 12554 & 12862 respectively.
  • The VWAP & POC of Oct Series is 11793 & 11897 respectively.
  • The VWAP & POC of Sep Series is 11353 & 11560 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 13915-13961-13970

HVNs – 13020 / 13084 / 13190 / 13440 / 13570* / 13692


BankNifty Dec F:  31338 [ 31549 / 31030 ]

BNF also made a big gap up open and went on to tag the 1 ATR objective of 31536 from previous day’s FA of 31022 as it made a high of 31549 in the opening minutes but similar to NF, saw big profit booking which led to the late longs being punished as it dropped 400 points in the first 15 minutes while making a low of 31150. The auction then made a typical C side RE lower which was rejected & gave the customary visit to the day’s VWAP and was rejected there as it left a PBH (Pull Back High) at 31288 which was also just below the long initiative selling tail from 31303 to 31549 of morning which meant that the probe to the downside is still not over. BNF then made a fresh RE in the ‘F’ period and followed it up with another big drop in the ‘G’ period as it made a low of 31030 stopping just above the FA of 31022 and this was the signal that the leg down could be done. The ‘H’ period then got back into the IB triggering an OTF (One Time Frame) probe higher till the ‘J’ period as the auction got into the morning singles and made a high of 31390 after which it consolidated for the rest of the day above VWAP to close the day right at the VAH of 31339. BNF has formed a ‘b’ shape long liquidation profile for the day with overlapping Value and the 2-day composite at 31186-31328-31379 would be on watch for the final session of 2020.

Click here to view the 2-day balance in BNF on MPLite

  • The BNF Open was a Open Rejection Reverse – Down (ORR)
  • The Day type was a Normal Day (‘b’ shape profile)
  • Largest volume was traded at 31209 F
  • Vwap of the session was at 31246 with volumes of 41 L and range of 519 points as it made a High-Low of 31549-31030
  • BNF confirmed a FA at 31022 on 29/12 and tagged the 1 ATR target target of 31538 on 30/12. The 2 ATR objective comes to 32055.
  • BNF confirmed a FA at 29000 on 26/11 and tagged the 2 ATR objective of 30355 on 07/12. This FA got tagged on 22/12 & held validating the positional support.
  • The settlement day Roll Over point (Dec) is 29629
  • The VWAP & POC of Nov Series is 28104 & 29565 respectively.
  • The VWAP & POC of Oct Series is 23740 & 24468 respectively.
  • The VWAP & POC of Sep Series is 22320 & 22320 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 31141-31209-31339

HVNs – 29650 / 30100 / 30300 / 30766*

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