Market Profile Analysis dated 4th Feb

Nifty Feb F:

NF opened with a small gap down & got resisted at the HVN of 10890 after which it probed lower making a low of 10843 and a narrow IB of just 51 points. The auction then made a balance in a range of 30 points between 10850-10880 till the ‘G’ period building up volumes at 10855 before it made an attempt to break IBL in the ‘H’ period making a new low at 10830 but was swiftly rejected back into the IB. This rejection however was not able to push the auction above VWAP as NF then made an inside bar in the ‘I’ period and as the ‘J’ period started, it again broke below IBL to get rejected again & this time the rejection resulted in a trending move higher as NF got back above VWAP and went on to break above IBH confirming a new FA at 10830 & made a high of 10918 in the ‘I’ period almost tagging the 1.5 IB range extension to the upside. NF continued to trend higher in the next 2 periods ‘K’ & ‘L’ leaving an extension handle at 10918 to complete the 2 IB range extension of 10945 and also the 1 ATR move up of 10952 from today’s FA leaving a Neutral Extreme Day and the reference for tomorrow’s open would be 10918-10954.

• The NF Open was a Open Auction In Range
• The day type was a Neutral Extreme Day(Up)
• Largest volume was traded at 10870 F
• Vwap of the session was at 10878 with volumes of 81.2 L in a session which traded a High-Low range of 10954-10830 for a range of 124 points 
• NF had left a FA at 10830 today and completed the 1 ATR move up of 10952 today itself but closed below it. The 2 ATR move up from this FA comes to 11073
• NF had left a FA at 10710 on 04/01 and completed the 2 ATR move up on 15/01 and was strong support. The auction broke below this FA twice this week but has got back above 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 Trend Day VWAP & POC of 31/01 10793 & 10775 will be important levels going forward
• The VWAP & POC of Jan Series is 10795 & 10823 respectively
• The VWAP & POC of Dec Series is 10796 & 10741 respectively
• The VWAP & POC of Nov Series is 10480 & 10580 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 10835-10870-10903

Hypos / Estimates for the next session:

a) NF has immediate support at extension handle of 10918 below which it can tag the break out zone of 10890-880
b) 10955 is immediate resistance above which the auction can probe higher to 10975-980 & 11000
c) NF gets weak below 10875 and can move lower to 10851 & the FA of 10830
d) Above 11000, NF can test previous week highs of 11023 & 11050-55
e) Below 10830, the auction can test the trend day extension handle & VWAP of 10793-789

BankNifty Feb F:

BNF opened with a big gap down of 150 points and started to accept in the buying tail of 27060-29650 which was a bearish signal and the ‘A’ period went on to break below the poor lows of 26950 to tag the vPOC of 26900 and closed almost at lows. The ‘B’ period continued the downside probe making a low of 26885 which was just above the weekly POC in BNF where the auction took support & started to make a balance in a narrow range of 26900-26990 till the ‘E’ period. The ‘F’ period saw BNF breaking away from this balance and probing above IBH making a high of 27090 which was also the 1.5 IB range extension on the upside. BNF then began to consolidate as it made an inside bar in the ‘G’ period and though ‘H’ probed below ‘G’, it took support at 26950 which was previous day low and a signal that the PLR is still to the upside. The ‘I’ period was another narrow range bar confirming a pull back low at 26950 and BNF was making a nice bell profile on daily when the ‘J’ period after making a low of 26960 gave a fresh move to the upside making new highs in BNF leaving an extension handle at 27090 to make a high of 27230. The auction continued to trend higher in the ‘K’ period where BNF tagged that extension handle of 27275 to make a high of 27312 completing the 3 IB range extension to the upside. BNF just stopped short of tagging that weekly HVN of 27330 as it made a high of 27318 in the ‘L’ period which was a narrow range bar as the auction was into balance mode after the imbalance. BNF has closed in a spike higher from 27230 to 27318 right at that extension handle of 27275 after a 3 IB day and has strong resistance right above at 27330 so can look for some consolidation here. Spike rules will be in play at tomorrow’s open.

• The BNF Open was a Open Auction In Range
• The day type was a Normal Variation Day (Up – 3 IB)
• Largest volume was traded at 26960 F
• Vwap of the session was at 27056 with volumes of 24.4 L in a session which traded a High-Low range of 27318-26885 for a range of 433 points
• BNF had confirmed a FA at 27275 on 01/02 and tagged the 1 ATR level of 27542 on that day itself. It went on to break below this FA and completed the 1 ATR of 27008 to the downside on the same day. This FA was tagged today at ‘T+1’ day and closed around it and is no longer a valid reference
• BNF confirmed a FA at 27716 on 23/1 and completed the 2 ATR move down hence is now strong resistance
• The VWAP & POC of Jan Series 27236 & 27514 respectively
• The VWAP & POC of Dec Series 26713 & 26832 respectively
• The VWAP & POC of Nov Series 25686 & 26218 (Spot) 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 26892-26960-27180

Hypos / Estimates for the next session:

a) BNF has immediate support at 27230 below which it can move lower to 27190-180 & 27090
b) Immediate resistance is at 27330 above which the auction can probe higher to 27410-430 & 27500
c) Below 27090, BNF gets weak for a move to 27020 & 26960
d) Above 27500, we can expect higher levels of 27575 and vPOC of 27640
e) 26950 is now strong support in BNF & if broken can go down to 26885 & 26800

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