Monthly charts (January 2024) and Market Profile Analysis

Nifty Jan Spot: 21725 [ 22124 / 21137 ]

Previous month’s report can be viewed here

Nifty has formed a Neutral monthly profile for January where it hit new ATH of 22124 on 16th but displayed exhaustion to the upside with a 2-day balance with a prominent POC at 22054 from where it made a trending move lower leaving a Scene Of Crime (SOC) at 21963 and made new lows for the month at 21137 on 24th Jan where it marked the end of the downside with another 2-day balance with the composite POC at 21300 from where it gave a bounce back to 21813 in the final week after confirming another SOC at 21454 and closed the month with a 3-day balance consisting ultra-prominent POC at 21700 which will be the opening reference for February. The monthly Value was overlapping to higher at 21403-21635-21760 and the series VWAP closed at 21581 and would be the important levels to watch in the coming month.

BankNifty Dec Spot: 45996 [ 48450 / 44429 ]

Previous month’s report can be viewed here

BankNifty remained below the 28th Dec VPOC of 48492 confirming a responsive selling tail of the December monthly profile from 48477 to 48636 as it left a small initiative one from 48381 to 48450 in January forming an elongated 4021 point range Double Distribution (DD) Trend Down profile with completely overlapping Value at 45665-48119-48445 and the DD singles from 47010 to 46580 which helped it to negate the entire initiative buying tail of December from 46507 to 44531 even making a look down below as it made a low of 44429 on 25th Jan but formed a Neutral Day marking the end of the downside for the month and have a bounce back to 46179 on 31st before closing around the BRN (Big Round Number) of 46000. The January series VWAP stands at 46353 and will be an important reference on the upside to be taken out on an EOD basis for the buyers to get some hold back with this month’s couple of TPO HVNs at 45650 & 47850 being the important support and resistance levels to watch out for.