It feels good to be posting here on Vtrender.
I want to thank Shai for the opportunity to add my inputs and would be happy to have your reactions.
If you see the charts above and understand the horizontal lines across the charts, you have rightly inferred that I am here to discuss Volume Profile analysis of the Nifty and the Bank Nifty.
These are 2 day charts, with the profile on the left denoting the price action from yesterday and the profile on the right of the chart is the action from today.
The price action in the Nifty today formed a traditional ‘Inside day’ ( well almost) and the value area was confined to yesterday’s value area ( purple bars).Within the action of the day today, we had buyers stepping in to arrest the downward momentum at precisely the Value area Low ( VAL) and they took it back above value later in the day.
In the Bank Nifty( BN), buyers let the BN drift some 35 points below VAL, before stepping in to drive price back in value again.
Inferences for tomorrow ( 5th March):
Nifty : The day set-up is positive and buyers have showed their hand by stepping in to take price higher.We would be looking for a follow through tomorrow based on this action.If you are leaning on the bearish side a break of 5075, followed by a break of 5057 should set you up for some nice profits.
Bank Nifty : This chart is slightly less bullish than the Nifty.We have seen a shift in Point of Control ( POC ) slightly to the downside. So if you are bullish on this index, be quick to take your profits. If you are bearish, then a break of 8965, will confirm the price pattern on the chart.
I have asked Shai to include some resources on Market Profile on the blog, so I will be free to use some terminologies and ensure that you guys know it is not Greek and Latin !!