Market Profile Analysis dated 6th May

Nifty May F:

NF gave a big gap down of almost 100 points as it moved from previous week’s balance to an imbalance leaving a invisible selling tail from 11765 to 11688 and tagging the FA of 11665 of 24th April on exactly ‘T+6’ days as it made a low of 11649 in the ‘A’ period confirming an OAOR start which meant that the auction could just stay in a narrow range for most part of the day. The ‘B’ period made an inside bar to confirm this and more importantly left a small buying tail from 11663 to 11649 which meant that there were no new sellers post the gap down. (Click here to view the profile chart for better understanding) The auction continued to remain in a narrow range till the ‘G’ period forming a ‘p’ profile showing that there was no new activity & only the shorts were covering their positions and this led to a probe higher in the ‘H’ period as NF attempted a range extension where it made a new high of 11695 but was immediately pushed back into the IB which signaled responsive selling. The ‘H’ period then made an outside bar breaking into the morning singles and the auction continued to probe lower as it made a range extension to the downside in the ‘K’ period confirming a FA at 11695 and made a low of 11626 in the ‘L’ period almost tagging the 1.5 IB extension lower but did not sustain below the IBL as it closed at the dPOC of 11655 to leave a Neutral Day. NF has moved away from the composite it as forming so the PLR is now to the downside & has left a weekly extension handle at 11712 which will remain the important reference to watch for this week in case of a bounce.

• The NF Open was a Open Auction Out of Range (OAOR)
• The day type was a Neutral Day 
• Largest volume was traded at 11655 F
• Vwap of the session was at 11664 with another low volume day as it recorded just 71.1 L in a narrow session of just 68 points trading in a High-Low range of 11695-11627
• NF confirmed a FA at 11665 on 24/04 and tagged the 1 ATR move up of 11779. The 2 ATR target from this FA comes to 11893. This FA was tagged today on ‘T+6’ Days.
• NF had confirmed a FA at 11432 on 26/03 and tagged the 2 ATR move of 11632 on 27/03. This FA has not been tagged & is now strong support.
• The settlement day Roll Over point is 11722
• The VWAP & POC of Apr Series is 11641 & 11592 respectively.
• The VWAP & POC of Mar Series is 11327 & 11448 respectively.
• The VWAP & POC of Feb Series is 10830 & 10856 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 11652-11655-11675

Hypos / Estimates for the next session:

a) NF needs to stay above 11655-660 for a probe to 11680 & 11695
b) NF will be weak if sustains below 11645 for a test 11630 & 11611
c) Above 11695, the auction can probe higher to 11712-722 & 11740-745
d) Below 11611, NF can tag lower zone(s) of 11589-580 & 11554-551
e) If 11745 is taken out, NF can move towards the HVNs of 11766 & 11785-790
f) Break of 11551 could bring lower levels of 11535 & 11521-514

BankNifty May F:

BNF also gave a big gap down of 350 points but took support just above the series lows of 29625 as it made a low of 29649 in the ‘A’ period from where it moved higher to get back into the weekly Value and in the process left a buying tail from 29760 to 29649 in the IB which indicated that the downside in BNF could be done for the day unless 29760 is taken out & sustained on the downside. (Click here to view the profile chart for better understanding) The auction then made a ‘C’ side range extension higher but as is the case with most of the ‘C’ side extensions failed to sustain giving a dip to VWAP but staying well above the morning singles balancing in a narrow range & in the process making a ‘p’ profile. The ‘G’ period then made a fresh range extension higher and the ‘H’ period followed as BNF tagged the weekly POC of 29864 making a high of 29880 but was not able to sustain the new highs as it got back into the IB and went on to break VWAP making a mechanical low of 29761 stopping just short of the morning singles. The next 2 periods made double inside bars as both attempted to get above IBH and the failure to sustain above it gave a move lower as BNF broke below that mechanical low to probe into the buying tail as it made a low of 29727 in the ‘L’ period but did not sustain and once it got back above 29760 gave a bounce back to that weekly POC to make a high of 29860 forming an outside bar. BNF closed in the high volume zone for the day which was 29800 to 29820 forming a Normal day with a ‘p’ profile with Value completely lower but can give a bounce till the 29760-725 zone is being defended.

• The BNF Open was a Open Auction Out of Range (OAOR)
• The day type was a Normal Day  (‘p’ profile)
• Largest volume was traded at 29820 F
• Vwap of the session was at 29805 with lowest volumes of this series at 20 L in a session which traded a High-Low range of 29880-29649 for a narrow range of 231 points
• BNF confirmed a multi-day FA at 29730 on 03/05 and tagged the 1 ATR move up of 30139. This FA got negated today as BNF opened below it.
• The settlement day Roll Over point is 29760
• The VWAP & POC of Apr Series is 30037 & 29762 respectively.
• The VWAP & POC of Mar Series is 29061 & 29778 respectively.
• The VWAP & POC of Feb Series 27042 & 26978 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 29770-29820-29851

Hypos / Estimates for the next session:

a) BNF needs to stay above 29820 for a move to 29865-880 & 29980
b) BNF remains weak below 29800 for a probe lower to 29760-725 & 29649
c) Above 29980, the auction can go for the vPOC tag of 30050-60 & 30111
d) Below 29649, BNF could test lower levels of 29555-528 & 29463-440
e) If BNF sustains above 30111, higher levels of 30160 & 30225-252 can come into play
f) Break of 29440 could lead a further fall in BNF to 29395-340 & 29302

For more tradeable ideas and intraday trading strategies based on MarketProfile and the OrderFlow live charts with OrderFlow analysis Live, subscribe to the trading room. The Vtrender Trading Room hosts India’s largest MarketProfile community live every trading session from 9.15 am to 3.30 pm.

If not a Trading Room member you can get immediate access at – https://in.explara.com/e/vtrender–trading–room/checkout