Monthly (August 2020) charts and Market Profile Analysis

Nifty Spot –  11387 [ 11794 / 10882 ]

Monthly Profile (August 2020)

Previous month’s report ended with this ‘The monthly profile has a buying tail from 10562 to 10299 and completely higher Value at 10490-10803-11142 with the DD (Double Distribution) singles or another buying tail in the middle of the profile from 10896 to 11040 which would be the immediate zone to watch on the downside in the coming month

Nifty opened the month with an OH start at 11058 on 3rd Aug and tested the previous month’s DD singles of 11040 to 10896 on the first day as it made a low of 10882 but went on to negate the entire fall on the 4th of Aug as it left a Trend Day higher confirming a weekly FA at 10882 which changed the PLR for the month to the upside. The auction then continued to probe higher in the first week as it made a high of 11256 and went on to scale above previous month’s high in the second week which started with the 1 ATR target of 11333 being hit on 10th Aug after which it tagged 11373 on 11th Aug but had started to form a balance on the larger timeframe. Nifty then moved away from this 9 day balance on 18th Aug and went on to make new highs for the month at 11460 on 19th Aug which was met with good supply as it gave a retracement to 11290 on the 20th but left a daily FA there which confirmed the end of the leg down and this initiated a fresh probe higher for the rest of the month as the auction not only tagged the 2 ATR objective of 11542 from the daily FA but also went on to complete the 2 ATR objective of 11784 from the weekly FA of 10882 on the last day of the month as it opened with a big gap up making a high of 11794 and saw big profit booking along with fresh selling as it ended the month with a Trend Day Down falling by 468 points closing the month in the middle of a 3-1-3 balanced profile. Value for the month was higher at 11130-11311-11550 and has rejections at both ends with the selling tail being from 11617 to 11794 which would be the supply zone for the coming month. On the downside, 11311 would be the important level to hold which if taken out could lead to the test of the lower rejection from 11064 to 10882.

Click here to view the daily Nifty chart of August on MPLite as per above analysis

Monthly Zones:

The VWAP of the August 2020 series is at 11311 spot and the POC is at 11311
The settlement day (Sep) rollover volume point is at 11607 F.

The VWAP of the July 2020 series is at 10897 spot and the POC is at 10803
The settlement day (Aug) rollover volume point is at 11095 F.

The VWAP of the June 2020 series is at 10110 spot and the POC is at 10110
The settlement day (Jul) rollover volume point is at 10240 F.

The VWAP of the May 2020 series is at 9200 spot and the POC is at 9106
The settlement day (Jun) rollover volume point is at 9426 F.

The VWAP of the April 2020 series is at 8999 spot and the POC is at 9010
The settlement day (May) rollover volume point is at 9822 F.

The VWAP of the March 2020 series is at 9146 spot and the POC is at 8592
The settlement day (Apr) rollover volume point is at 8686 F.


BankNifty Spot –  23754 [ 23232 / 21031 ]

Monthly Profile (August 2020)

Previous month’s report ended with this ‘BankNifty also confirmed a FA on the monthly time frame at 21028 & the monthly profile is a well balanced Neutral one with two-sided moves all month with completely higher Value at 21570-22087-22710 but with a contracted range of 2184 points along with a close near the VAL

BankNifty opened the month with a drive down from below the monthly Value as it fell by more than 500 points on 3rd Aug almost tagging July’s monthly FA of 21027 while making a low of 21031. The auction then negated the entire fall of the first day with a strong open on 4th Aug and went on to make new highs for the month and in the process confirmed a weekly FA at 21031 and this led to a fresh probe higher over the next few days as BankNifty made a high of 22440 on 13th Aug after which it formed a balance between 21400-22400 till 21st Aug. The auction then initiated a move away from this balance on 24th Aug as it made a strong OTF (One Time Frame) probe higher for the last 6 days of the month rising by 2800 points as it not only completed the 1 ATR objective of the monthly FA at 24141 but also taggged the 2 ATR target of 24436 from the weekly FA of 21031 while making a high of 24611 on 28th Aug. The last day of the month saw a gap up open of 500 points as BankNifty continued to probe higher hitting the selling tail of the huge monthly profile of March 2020 as it tagged 25232 and got rejected from that month’s VAH of 25200 to fall by 1847 points as it closed the month at 23754. This month’s Value is at 21060-21595-23400 and is completely overlapping July’s range and has left multiple extension handles at 22440 / 22897 & 23180 which would be the important references on the downside in the coming month. The selling tail of 24611 to 25232 would be the zone to watch out for on the upside.

Click here to view the daily BankNifty chart of August on MPLite as per above analysis

Monthly Zones:

The VWAP of the August 2020 series is at 22444 spot and the POC is at 21595
The settlement day (Sep) rollover volume point is at 23576 F.

The VWAP of the July 2020 series is at 22163 spot and the POC is at 22087
The settlement day (Aug) rollover volume point is at 21615 F.

The VWAP of the June 2020 series is at 20918 spot and the POC is at 21164
The settlement day (Jul) rollover volume point is at 21430 F.

The VWAP of the May 2020 series is at 18780 spot and the POC is at 19633
The settlement day (Jun) rollover volume point is at 19035 F.

The VWAP of the April 2020 series is at 19605 spot and the POC is at 19710
The settlement day (May) rollover volume point is at 21380 F.

The VWAP of the March 2020 series is at 22104 spot and the POC is at 20248
The settlement day (Apr) rollover volume point is at 19380 F.