Market Profile Analysis dated 8th Mar

Nifty Mar F:

NF opened lower and stayed not just below the yPOC of 11082 but also the yVAL of 11075 indicating that the PLR (Path of Least Resistance) of the auction is to the downside and it probed lower in the ‘A’ & ‘B’ periods making a low of 11037 in the IB (Initial Balance) giving a relatively narrow range of 38 points. (Click here to view the profile chart for better understanding) The auction then balanced for the next 2 periods making similar lows of 11045 indicating temporary exhaustion to the downside and this got confirmed as NF probed higher in the ‘E’ period to get above the IBH of 11076 and went on to tag the yPOC making a high of 11084 but could not sustain above IBH. The next period ‘F’ made an inside bar though stayed above VWAP but could not scale back above the IBH indicating that the auction is now done on the upside & could probe lower. The ‘G’ period then broke below VWAP to initiate that probe to the downside making yet another low at 11045 & the ‘H’ period got lower breaking below the IBL to make a low of 11033 tagging that FA but was swiftly rejected to close back inside the IB confirming a Neutral Day set up. The auction then rotated back higher over the next 3 periods to get above IBH & tagged the yPOC of 11082 re-confirming the FA at 11033 in the ‘K’ period but again did not get new demand leaving poor highs in the profile. NF then moved lower & looked like would close at the day’s prominent POC of 11055 which had all the TPOs of the day giving a perfect Neutral Centre Day but it took support at VWAP as it made a low of 11059 in the ‘L’ period and got back higher to close at the IBH & above VAH giving a bit of bullish close though the Value for the day was lower. NF has made a nice 3 day composite balance after the trend day of 5th Mar and has closed at the POC of this balance which is also the weekly POC so looks likely that it can give a move away from here in the coming week. Also, we have had 3 Neutral Days in the 5 trading sessions of this series which means there are 2 forces fighting against each other so good chance that one of them overcomes the other soon.

• The NF Open was a Open Auction in Range (OAIR)
• The day type was a Neutral Day
• Largest volume was traded at 11051 F
• Vwap of the session was at 11058 with volumes of 74.3 L in a session which traded a High-Low range of 11084-11033 for a range of 51 points
• NF re-confirmed the FA at 11033 on 08/03 and the 1 ATR move up comes to 11147.
• The Trend Day VWAP & POC of 05/03 at 10946 & 10934 will be important levels for the series.
• The VWAP & POC of Feb Series is 10830 & 10856 respectively.
• The VWAP & POC of Jan Series is 10795 & 10823 respectively.
• The VWAP & POC of Dec Series is 10796 & 10741 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 11045-11051-11071

Hypos / Estimates for the next session:

a) NF has immediate support at 11076-72 below which it can probe lower to 11059-49 & 11033-28
b) Sustaining above 11085 at open, the auction can move higher to 11101-10 & 11134-140
d) Below 11028, NF can fall to 11013 and 10988-976
d) Above 11140, the auction can move to the swing high of 11170 & 11190
e) Below 10976, NF can move lower to test levels of 10950-946 & 10925

BankNifty Mar F:

BNF opened well below the higher HVN & yPOC of 27830 with a gap down of 60 points and in the singles of yesterday’s profile looking to fill up the low volume zone between 27710 to 27814. The auction probed lower in the first 45 mins making a low of exact 27710 from where it gave a bounce to close the ‘B’ period above VWAP leaving yet another small IB of just 78 points. (Click here to view the profile chart for better understanding) The next 2 periods stayed inside the ‘B’ period as the range contracted further and this led to a big move in the ‘E’ period as BNF moved higher confirming a pull back low at 27740 in the ‘D’ period and got above the IBH to tag the yPOC of 27830 and went on to probe above PDH making a new high of 27891 and in the process completed the 2 IB range extension to the upside. The auction then balanced in the ‘F’ period making an inside bar before breaking lower in the ‘G’ period to break the IBH & VWAP combo of 27788 and continued its probe downside in the ‘H’ period as it made a low of 27742 where it took support and reversed to close the ‘H’ period above the VWAP & IBH giving an important signal as the morning pull back low of 27740 was defended. The auction then made a small balance in the next 2 periods as the ‘I’ period saw a higher high of 27834 and the ‘J’ period made an inside bar after which it saw another move to the upside in the ‘K’ period as BNF made a similar range of 130 points as in the ‘E’ period to print new highs of 27915. The ‘L’ period followed higher to make a higher high of 27920 after which BNF gave a retracement to 27850 before closing at the HVN & dPOC of 27883 which will be the level to watch at open in the next session.

• The BNF Open was a Open Auction In Range (OAIR)
• The day type was a Normal Variation Day (Up)
• Largest volume was traded at 27880 F
• Vwap of the session was at 27810 with volumes at 19 L in a session which traded a High-Low range of 27920-27710 for a range of 210 points
• BNF confirmed a FA at 27288 on 27/02 and tagged the 1 ATR move down at 27021.The auction got above this FA and tagged the 2 ATR move up at 27868 on 07/03.
• The Trend Day VWAP of 05/03 of 27380 will be important level for the series.
• The VWAP & POC of Feb Series 27042 & 26978 respectively
• The VWAP & POC of Jan Series 27236 & 27514 respectively
• The VWAP & POC of Dec Series 26713 & 26832 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 27768-27880-27900

Hypos / Estimates for the next session:

a) BNF sustaining below 27880 at open can probe lower to 27830 & 27788-745
b) Staying above 27885-900 at open, BNF can tag higher levels of 27969 & 28023-80
c) BNF gets weak below 27740 for a move to 27670 and 27600
d) Above 28080, the auction probe higher to 28135 and vPOC of 28180
e) If 27600-560 is broken & sustained, BNF gets positionally weak for a move to 27486-440 and 27390-350
f) On the upside, if BNF manages to accept above 28180 it could test the selling tail of 28225-300 and the vPOC of 27390

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