Market Profile Analysis dated 6th June

Nifty Jun F:

NF opened in previous day’s range & made an attempt to probe higher but was rejected as it made a high of 12059 after which it broke below previous day’s low confirming an ORR (Open Rejection Reverse) start. The auction went on to break the Trend Day VWAP & POC in the ‘A’ period itself and even closed below it which set up a totally bearish scenario for the day. (Click here to view the profile chart for better understanding) NF then made a relatively bigger IB of 78 points after which it consolidated for the next 2 periods before attempting a range extension on the downside in the ‘E’ period which was rejected as NF made a low of 11971 and this resulted in a bounce in the ‘F’ period as the auction got into the morning selling tail & tagged that trend day VWAP of 12015 but was again met with fresh supply here which reversed the auction and went on to make an outside bar as it made a fresh range extension lower after which NF continued to trend lower as it left an extension handle at 11937 in the ‘I’ period and made lower lows till the ‘L’ period where it tagged 11866 and closed around the HVN & dPOC of 11886. NF has negated the opening Trend Day Up of the week with a Trend Day Down today with Value also forming lower with a gap with the range also increasing. 11953 which it today’s VWAP would be the level to cross & sustain in the coming days if NF has to resume the uptrend.

• The NF Open was a Open Rejection Reverse – Down (ORR)
• The day type was a Trend Day (Down) 
• Largest volume was traded at 11886 F
• Vwap of the session was at 11953 with volumes of 126.9 L making a range of 193 points as it made a High-Low of 12059-11866
• The Trend Day VWAP of 11953 will be important supply point from now.
• The Trend Day VWAP of 12015 will be important support now. This VWAP was broken today & NF closed below it so it is no longer support
• The settlement day Roll Over point is 11980
• The VWAP & POC of May Series is 11613 & 11696 respectively.
• The VWAP & POC of Apr Series is 11641 & 11592 respectively.
• The VWAP & POC of Mar Series is 11327 & 11448 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 11867-11886-11986

Hypos / Estimates for the next session:

a) NF staying above the HVN of 11886 can test higher levels of 11907-915 & 11937
b) Sustaining below 11886, the auction can move lower to 11862-852 & 11830-825
c) Above 11937, NF could probe higher to 11955 & the important supply zone of 11980-991
d) Below 11825, NF can check lower supports of 11800-795 & 11770
e) Above 11991, NF can probe higher to 12016-26 & 12059
f) Break of 11770 can trigger a move lower to 11750-745 & 11722-710

BankNifty Jun F:

Yesterday’s report ended with this line ‘There is a good chance of the auction giving a move away from here in the coming 2 sessions’ and BNF gave that move away at open itself as it opened below yVAL (yesterday’s Value Area Low) with an OH (Open=High) and gave a drive down breaking below PDL (Previous Day’s Low) and the FA of 31571 and closed the ‘A’ period well below it confirming that PLR (Path of Least Resistance) for the day is to the downside. (Click here to view the profile chart for better understanding) The auction then consolidated for the next 3 periods making narrow range bars staying in middle of the ‘A’ period range and an attempt in the ‘D’ period to probe into the morning singles was rejected as BNF left a pull back high at 31513 which only re-confirmed the weakness in the structure. The ‘E’ period then went on to make a range extension lower which again was rejected as BNF bounced back in the ‘F’ period to probe above ‘E’ probably to make sure there is no unfinished business left as it made a high of 31507 and on not finding any fresh demand started a trending move lower as it made wide range bars from the ‘F’ period to the ‘I’ period leaving extension handles at 31378, 31328 & 31190 as it made a low of 30931 completing the 1 ATR down move from the negated FA of 31571. The auction then made a small balance at lows after the 600 point move down building volumes at 30970 before making a new low of 30883 in the ‘L’ period to complete a Triple Distribution Trend Day Down as it closed around the HVN of 30970.

• The BNF Open was a Open Drive – Down (OD)
• The day type was a Trend Day (Down) 
• Largest volume was traded at 31480 F
• Vwap of the session was at 31237 with volumes at 39.1 L in a session which traded a High-Low range of 31600-30883 for a range of 717 points
• The settlement day Roll Over point is 31644
• The VWAP & POC of May Series 30211 & 28940 respectively
• The VWAP & POC of Apr Series is 30037 & 29762 respectively.
• The VWAP & POC of Mar Series is 29061 & 29778 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 31005-31480-31555

Hypos / Estimates for the next session:

a) BNF needs to sustain above HVN of 30970 for a move to 31040-65 & 31160-190
b) Sustaining below 30970, the auction can test 30928-923 & 30880-850
c) Above 31190, BNF can probe higher to 31237-288 & 31327-378
d) Below 30850, BNF can move lower to 30790-740 & 30674-643
e) If BNF sustains above 31378, higher levels of 31450 & 31513-53 could open up
f) Break of 30643 could trigger a move down to 30575-543 / 30510-505 & 30400

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