Profile Analysis

I hope regular visitors to the blog are getting an idea of how market profile is helping us to analyze the turns of the market and keeping us ahead in our assessment of order flow. I can think of no better example than the post made here yesterday which prevented us from going overboard with the many baby bulls who were talking 5200 today!

Today was a neutral day, good auction day which showed that buyers/ sellers were waiting for new information for the market’s next move. We got two levels for our trading 5082/92 and 5127/37 which will help us in our profile analysis on Monday.

Let’s look deeper into what the profile picture is telling us not just for Monday, but also the rest of the week and this expiry.

Nifty30Mindaily1 Profile Analysis

The chart is a 30 min profile of the Nifty future showing the low from the 25th of May when we had 4786 till today. I had mentioned yesterday that the value had not kept up with price, but if you see on the top right we had a balanced profile today with a close at the point of control, indicating that buyers and sellers agreed on price today and the market is in a state of balance and awaiting new information.There is lots the market can react to over the weekend, but if it does not find anything significant then we will open on Monday right here at 5113.

Another chart I want to put up is the weekly profile :

Niftyweekly Profile Analysis

The blue dotted regions are the weekly profiles. The “b” shape shows you how shorts created early in the week/ last week were covered and the market moved higher.The base of the previous week is also a lot more heavier and the cumulative profile in pink shows the importance of this region between 4940 and 5040 as an important support region for the market going forward.There has been good value created in this zone.

I’ll like to finish with the developing profile chart for this expiry. We had a look at this chart last here

Please understand that this is a developing chart and the final values can change

Monthly1 Profile Analysis

So far value is being created within the previous month’s value..