Market Profile Analysis dated 7th Feb

Nifty Feb F:

NF opened around previous close and probed higher getting above PDH (Previous Day High) to make a high of 11114 in the ‘A’ period post which it made an inside bar in the ‘B’ period to make a very narrow IB range of just 36 points. NF had a buying tail of 11097-11078 in the ‘A’ period and till this stayed, the PLR would remain to be up. The auction made a very slow move up as it made higher highs in ‘C’ & ‘D’ periods and got above IBH to tag 11120 in the ‘E’ period. NF then spiked higher as soon as the ‘F’ period began to make new highs of 11143 which was swiftly rejected back into the IB and it went on to break VWAP and close below it. The ‘G’ period continued the imbalance lower & broke below IBL confirming a FA at highs to close at lows after which the ‘H’ period made new lows of 11060 and this entry into previous day’s Value was rejected immediately giving a indication that the down move could be over which got confirmed as ‘H’ got back above VWAP & also closed above it. The auction then continued the probe higher in the next 2 periods ‘I’ & ‘J’ even getting above the IBH to confirm a FA at lows also. However, the upmove also stalled in the ‘K’ period as NF stayed mostly inside ‘J’ and also the first half of of the ‘L’ period was inside ‘K’ but the last 30 minutes saw NF breaking lower dropping 40 points from 11120 to 11079 stopping just short of the IBL to give a Neutral Day with a nice 3-1-3 balanced profile with FAs at both the ends. The auction could give a good move in the direction of the FA it negates in the coming days.

• The NF Open was a Open Auction
• The day type was a Neutral Day
• Largest volume was traded at 11107 F
• Vwap of the session was at 11105 with volumes of 91.3 L in a session which traded a High-Low range of 11143-11060 for a range of 83 points 
• NF had left a FA at 10830 on 04/02 and completed the 2 ATR move up of 11073 today and closed above it. This FA is currently on ‘T+4’ days.
• 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 last 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 06/02 11046 & 11035 will be important levels going forward
• 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 11095-11107-11135

Hypos / Estimates for the next session:

a) NF has immediate support at 11070-60 below which it can test 11045 & 11023
b) Staying above 11095 at open, the auction can move to 11120 & 11135
c) NF gets weak below 11023 for a move to 11006 & 10985-970
d) Above 11135, NF can probe higher to 11160 & 11180
e) Below 10970, NF can move lower to 10950-939 & 10901

BankNifty Feb F:

BNF gave a freak open & low of 27350 & 27300 respectively but was mostly around previous close after which it probed higher getting above PDH and making a high of 27510 in the A period. The ‘B’ period was stuck in an unusual range of just 22 points and ‘C’ & ‘D’ were no better as the market was waiting for the event to be out of the way. The ‘E’ period saw some action as the range expanded and BNF probed higher scaling above IBH and closing around the highs following which there was a spike higher at the start of the ‘F’ period which saw BNF breaking above the Friday highs of 27600 and making a high of 27647 but was immediately rejected where BNF dropped lower quicker breaking below IBH & VWAP to make a low of 27407 giving a WRB (wide range bar) of 247 points in the ‘F’ period and also recovered from the lows to close above the IBH. The ‘G’ period made an inside bar confirming a tail at top from 27562 to 27647 and traded mostly inside IB with a close at lows indicating that the downside probe is still not complete and this got confirmed when BNF made lower lows in the next period ‘H’ and went on to make a new low of 27370 before it reversed the auction as it swiftly went back above the open of ‘H’ period and climbed higher to get above VWAP & IBH and closed at 27540. The auction then made higher highs on smaller ranges in the next 2 periods getting into that afternoon singles but after making a high of 27595 it reversed and the last 45 minutes saw a big inventory adjustment as BNF fell from 27560 to 27395 to give a Neutral Profile which has a tail at both ends.

• The BNF Open was a Open Auction
• The day type was a Neutral Day (3-1-3 Profile)
• Largest volume was traded at 27508 F
• Vwap of the session was at 27506 with volumes of 29.1 L in a session which traded a High-Low range of 27647-27370 for a range of 277 points
• BNF confirmed a FA at 27353 on 06/02 and the 1 ATR move up comes to 27675
• 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 27460-27508-27589

Hypos / Estimates for the next session:

a) BNF has immediate support at 27400-370 below which it can tag that vPOC of 27330 & today’s freak low of 27300
b) Sustaining above 27460 at open, the auction can probe higher to 27510 & 27580
c) Below 27300, the auction gets weak for a move to 27250 and 27180-160
d) BNF has major resistance now at 27595 and if sustains above it can probe higher to 27675 & 27716
e) If 27160 is broken in BNF then it can fall to 27090 & 27030

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