Monthly charts (Janurary 2021) and Market Profile Analysis

Nifty Spot –  13635 [ 14753 / 13596 ]

Monthly Profile (January 2021)

Previous month’s report ended with this ‘The monthly profile is a trending one to the upside with 2 extension handles at 13128 & 13777 and completely higher Value at 13209-13528-13769. The triumvirate daily FAs of 13865 / 13811 & 13627 would be the important references on the downside for the coming month along with the monthly POC / VWAP combo of 13528 which remains the important level that needs to be held. On the upside the zone of 14202 to 14267 would be on watch for return of supply

Nifty has formed a Neutral Extreme Profile Down on the monthly time frame as it trended higher for the first half of the month where it negotiated the supply zone of 14202 to 14267 with ease in the first week and went on to make highs of 14653 in the second week where it confirmed an Open Rejection Reverse on 13th Jan which brought about the first retracement of the month as the auction fell to 14222 at the start of the third week where it left a swing low respecting the weekly VPOC of 14193 and started a fresh leg to the upside as Nifty went on to make new highs for the month at 14753 on 21st Jan. The third week ended with a daily FA at 14620 which also confirmed a selling tail at top on the monthly profile triggering a huge fall in last week of the month as it not only formed new lows for the month but spiked lower into the close as it hit 13597 before closing the month at 13635. Value for the month was completely higher at 14098-14570-14644 but the close has been way away from the Value with an extension handle at 13902 along with a spike from 13728 to 13597 which would be on watch at the start of the new month with 13528 being the important support level.

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

Monthly Zones:

The VWAP of the January 2021 series is at 14288 spot and the POC is at 14569
The settlement day (Feb) rollover volume point is at 13809 F.

The VWAP of the December 2020 series is at 13528 spot and the POC is at 13528
The settlement day (Jan) rollover volume point is at 14007 F.

The VWAP of the November 2020 series is at 12554 spot and the POC is at 12862
The settlement day (Dec) rollover volume point is at 12974 F.

The VWAP of the October 2020 series is at 11793 spot and the POC is at 11897
The settlement day (Nov) rollover volume point is at 11665 F.

The VWAP of the September 2020 series is at 11320 spot and the POC is at 11560
The settlement day (Oct) rollover volume point is at 10830 F.

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.


BankNifty Spot –  30565 [ 32842 / 29687 ]

Monthly Profile (January 2021)

Previous month’s report ended with this ‘The month ended with a 3-day balance building a prominent POC at 31300 and can expect a move away from here in the coming session(s). Value for the month was overlapping to higher at 29520-30766-30840 with the immediate references on the downside being the FA of 31002 & the extension handle of 30945′

BankNifty also formed a Neutral Profile on the monthly as it tested the extension handle of 30945 in the opening week where it got rejected and trended higher for the first part of the month to hit 32719 on 14th Jan from where it gave a 1000 point retracement in 2 days while making a low of 31651 in a spike lower on 18th Jan. However, this spike got rejected and the auction initiating a new leg to the upside over the next 3 sessions where it made new highs of 32842 for the month but ended the day as a Neutral Extreme Day on 21st Jan which signalled the end of the upmove resulting in a huge one time frame fall over the next 4 sessions as BankNifty broke below 30945 on 27th Jan and went on to make new lows for the month at 30165 and extended this downmove on the 28th where it further fell to 29687 but the confirmation of a daily FA (Failed Auction) at this point arrested the slide and resulted in a bounce back to 31112 on the last day of the month before it closed at 30565. Value for the month was completely higher at 31110-32062-32610 but the close has been away from the Value so the PLR for the coming month would be to the downside with the buying tail of 30165 to 29687 on the monthly profile being the zone to be negated.

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

Monthly Zones:

The VWAP of the January 2021 series is at 31597 spot and the POC is at 32062
The settlement day (Feb) rollover volume point is at 30445 F.

The VWAP of the December 2020 series is at 30270 spot and the POC is at 30766
The settlement day (Jan) rollover volume point is at 31389 F.

The VWAP of the November 2020 series is at 28103 spot and the POC is at 29565
The settlement day (Dec) rollover volume point is at 29629 F.

The VWAP of the October 2020 series is at 23740 spot and the POC is at 24468
The settlement day (Nov) rollover volume point is at 24110 F.

The VWAP of the September 2020 series is at 22246 spot and the POC is at 22405
The settlement day (Oct) rollover volume point is at 20490 F.

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.