Market Profile Analysis dated 8th Jan 2020

Nifty Jan F:  12063 [ 12090/ 11976 ]

HVNs – (11946-964) / 11994 / 12040 / 12062 / 12113 / 12160 / 12260 / 12327

NF opened with a big gap down at 11997 and went on to make new lows for the week at 11976 in the opening minutes and found itself too far away from Value as it probed higher in the ‘A’ period to get back into the composite Value of previous 2 days and continued to probe higher as the ‘B’ period started where it made a high of 12090 but was swiftly rejected and was pushed back below PDL (Previous Day Low) as it completed the Initial Balance (IB) with tails at both ends. The auction then made another attempt to get back into previous day’s range & the composite Value in the ‘C’ period but was once again swiftly rejected from 12066 and this rejection paved way for a probe to the downside as NF got into the buying tail of the IB from 12028 to 11976 in the ‘D’ period and went on to make similar lows of 11997 over the next 3 periods which indicated exhaustion leading to a move back above 12028 in the ‘G’ period as it once again got back above PDL making a higher high in ‘H’ at 12060. There was another rotation to the downside over the next 2 periods as the auction came down to test VWAP and both the times showed signs of demand coming in as it left a PBL (Pull Back Low) at 12023 in the ‘J’ period which led to a quick short squeeze move of over 50 points as NF made highs of 12075 and stayed above VWAP for rest of the day to give yet another new PBH of 12085 in the ‘L’ period before closing at the dPOC of 12063 giving a Normal Day. Value for the day was overlapping to lower but the profile has left a small excess at the new lows which could mean that the auction could have made a short term bottom and the PLR would be on the upside in the coming session with immediate support at 12060. On the upside, the first objective would be the composite VPOC of 12120 above which it could be headed towards the next VPOC of 12260.

View the MPLite chart of the Normal Day in NF here

  • The NF Open was an Open Rejection Reverse (ORR)
  • The day type was a Normal Day
  • Largest volume was traded at 12062 F
  • Vwap of the session was at 12037 with volumes of 115 L and range of 114 points as it made a High-Low of 12090-11976
  • The settlement day Roll Over point (Jan) is 12193
  • The VWAP & POC of Dec Series is 12087 & 12182 respectively.
  • The VWAP & POC of Nov Series is 11954 & 11910 respectively.
  • The VWAP & POC of Oct Series is 11461 & 11365 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 12014-12062-12067

Hypos / Estimates for the next session:

a) NF has immediate supply at 12080 above which it could rise to 12105-113* / 12126 & 12140
b) The auction has immediate support at 12065-060 below which it could fall to 12042-023 / 12005 & 11990
c) Above 12140, NF can probe higher to 12160-170 / 12185-200 & 12220
d) Below 11990, auction could probe lower to 11974 / 11956* & 11930-926
e) If 12220 is taken out, the auction go up to to 12234 / 12252*-260 & 12282-290
f) Break of 11926 can trigger a move lower to 11904-886 / 11863 & 11848-843


BankNifty Jan F:  31444 [ 31541 / 30972 ]

HVNs – 30880 / (31150) / 31280 / (31430) / (31480-500) / (31830) / 32160 / 32210

BNF also opened lower with a huge gap of over 300 points & continued to probe lower as it made lows of 30972 breaking below the positional support of 31069 (FA from 15th November which had not being revisited) but was immediately rejected as it got back into previous day’s range confirming an ORR (Open Rejection Reverse) that too after testing an important reference which meant that the downside could be limited. The auction went on to make highs of 31458 in the IB giving a huge 487 point range which was the largest in over 3 months and this meant that there was good chance that we stay within this range all day which is what happened as the probe lower post IB got stalled at 31115 where BNF left a PBL in the ‘F’ period after which it made a slow probe back to the IBH and in fact gave a spike higher in the ‘L’ period to tag the composite POC of 31490 while it made new highs of 31541 but was swiftly rejected back into the IB to close the day at 31444 leaving a Normal Day with a 3-1-3 profile and more importantly with an excess at new lows from 31115 to 30972 which could mark the end of the imbalance to the downside which began with the FA at 32774.

View the MPLite chart of the imbalance from 32774 to 30972 in BNF here

  • The BNF Open was an Open Rejection Reverse  (ORR)
  • The day type was a Normal Day (3-1-3 profile)
  • Largest volume was traded at 31280 F
  • Vwap of the session was at 31265 with volumes of 45.6 L and range of 569 points as it made a High-Low of 31541-30972
  • BNF confirmed a FA at 32774 on 30/12 and tagged the 2 ATR target of 32142 on 03/01. This FA has not been tagged and is now positional resistance.
  • The settlement day Roll Over point (Jan) is 32180
  • The VWAP & POC of Dec Series is 31956 & 32102 respectively.
  • The VWAP & POC of Nov Series is 30699 & 31100 respectively.
  • The VWAP & POC of Oct Series is 28784 & 28415 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 31086-31280-31350/strong>

Hypos / Estimates for the next session:

a) BNF needs to sustain above 31460-480 for a rise to 31530-555 / 31616-661 & 31725
b) The auction has immediate support at 31425 below which it could test 31370-328 / 31280-265 & 31210-180
c) Above 31725, BNF can probe higher to 31777-784 / 31826-830 & 31900-930
d) Below 31180, lower levels of 31126-115 / 31050 & 30980 could be tagged
e) If 31930 is taken out, BNF can give a fresh move up to 32000-034 / 32075-95 & 32160*
f) Break of 30980 could trigger a move down to 30880 / 30805* & 30741

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