Weekly Charts (01st to 04th December 2020) and Market Profile Analysis

Nifty Spot Weekly Profile (01st to 04th Dec 2020)

Spot Weekly – 13258 [ 13280 / 12963 ]

Nifty began the week with a move away from previous week’s POC of 12981 on Tuesday as it left a buying tail in the IB (Initial Balance) from 13002 to 12963 and probed higher getting accepted above the weekly Value while making a high of 13128 leaving a ‘p’ shape profile for the day. The auction made a similar high of 13128 at open on Wednesday indicating exhaustion in the upmove due to lack of fresh demand and this led to a replica of the previous day’s auction but in the opposite direction as Nifty probed lower to hit 12983 stopping just above previous week’s POC of 12981 which meant that the buyers were keen to defend this zone which triggered a short covering rally into the close leaving an inside bar both in terms of range & value along with a nice 2-day balance with a prominent POC at 13080. Thursday opened with a gap up in an attempt to move away from this balance but settled into an OAOR (Open Auction Out of Range) as it formed higher Value in a range of just 36 points leaving another prominent POC at 13148. Nifty gave another gap up open on Friday and this time followed it up with a trending move higher resulting in a C side extension where it made a high of 13248 and the first sign of profit booking by buyers came in the ‘D’ period as the auction made a marginal new high of 13250 and coupled with the One Time Frame stopping in the ‘E’ period, the auction then retraced the entire upmove of the day and even made new lows in the ‘H’ period as it hit 13153 but was swiftly rejected back from just above the prominent POC of 13148 which enabled a strong come back by the buyers as they took complete control spiking higher into the close to record new highs of 13280 and in the process confirming a FA at lows. The weekly profile looks like a balanced one with completely higher Value at 13050-13080-13206 but has closed in an imbalance around the highs which can continue at open in the coming week with the immediate reference being the spike zone of 13250 to 13280.

Click here to view this week’s auction in Nifty with respect to the previous week on MPLite

Main Weekly Hypos for Nifty (Spot):

A) Nifty needs a drive above 13280 for a probe to 13349 / 13398 / 13450 / 13498 & 13530
B) Accepting below 13250 could lead to a test of 13208 / 13148 / 13084 / 13043 & 12990

NF (Weekly Profile)

13311 [ 13326 / 12993 ]

NF opened the week with a move away from previous week’s prominent POC on the upside on Tuesday as it negated the Trend Day extension handle of 13122 of 25th Nov and made new ATH of 13168 forming a ‘p’ shape short covering profile with one of the lowest daily volumes in recent times suggesting poor trade facilitation at these new highs. The auction then got rejected from previous VAH at open on Wednesday as it probed lower for most part of the day as it got back to the weekly POC of 13032 and once again found initiative buyers triggering a new leg on the upside as NF not only made new highs of 13177 into the close leaving a Neutral Day with almost same Value but went on to move away from the 2-day composite POC of 13110 on Thursday where it made a high of 13228 forming higher Value and a perfect Gaussian Profile and followed it up with a trending move higher in the first half on Friday where it made new highs of 13298. The new highs attracted some good profit booking as the auction retraced the day’s upmove but took support in the morning buying tail as it left a PBL (Pull Back Low) at 13206 and went on to spike higher into the close of the week as it tagged 13326 leaving a Triple Distribution Trend Up weekly profile with moslty higher Value at 13050-13120-13218. The weekly HVNs of 13260 / 13190 / 13151 & 13110 would be the important references on the downside for the coming week as the PLR remains to the upside.

BankNifty Spot Weekly Profile (01st to 04th Dec 2020)
Spot Weekly – 30052 [ 30162 / 29150 ]

BankNifty probed below previous week’s prominent POC of 29540 at open on Tuesday but was swiftly rejected as it left a 100 point buying tail in the IB from 29611 to 29511 and formed a ‘p’ shape profile for the day testing the selling tail of the Trend Day profile of 26th Nov which was from 29876 to 29971 where it met with initiative supply once again as it closed below 29876. Wednesday open saw another attempt being made to get above 29876 but was swiftly rejected leading to an OTF (One Time Frame) move lower as the auction completed the 80% Rule in previous week’s Value stopping just above the VAL of 29140 as it made lows of 29150 and saw a sharp retracement back to 29540 into the close. BankNifty completed the reverse 80% Rule in the weekly Value with a gap up open on Thursday but the prominent weekly POC continued to act as a magnet as the auction made a low right there in the ‘A’ period reversing the probe once again to the upside but made a typical C side extension trapping the late buyers and this triggered a sharp move lower resulting in a Neutral Extreme (NeuX) Day Down. There was no follow up to this Neutral Extreme zone on Friday as BankNifty not only opened with a gap up but continued to drive higher even making a big 230 point range extension in the ‘C’ period as it hit new highs for the week at 29980 where it saw some good profit booking combined with fresh supply entering as the auction left a selling tail in the C period from 29881 to 29980 and reversed the probe to the downside over the next 5 periods negating the Open Drive as it went on to make a RE lower resulting in new lows for the day at 29473 in the ‘H’ period where it got swiftly rejected from the NeuX POC of 29480. This rejection started a fresh imbalance on the upside as BankNifty confirmed a FA first on the daily time frame and then on the weekly time frame closing in a spike from 29980 to 30162 leaving the second succesive NeuX Day. The weekly profile is a well balanced one with overlapping to higher Value at 29530-29690-29839 but has moved away from this Value giving a NeuX close even on the weekly and the NeuX zone on watch for the coming week would be from 29920 to 30162.

Click here to view this week’s auction in BankNifty with respect to previous week’s profile on MPLite

Main Weekly Hypos for Bank Nifty (Spot):

A) BankNifty needs to sustain above 30102 for a probe to 30210 / 30330 / 30460 / 30582 / 30702 & 30805
B) Accepting below 30021, the auction could test 29920 / 29849 / 29720 / 29581 / 29473 & 29350

Extended Weekly Hypos

C) Above 30805, BankNifty can probe higher to 30921 / 31010 / 31124 / 31235 / 31326 & 31436
D) Below 29350, lower levels of 29240 / 29160 / 29050 / 28977 / 28853 & 28738 could come into play

BNF (Weekly Profile) 

30191 [ 30277 / 29202 ]

BNF has left a Neutral Extreme profile on the weekly with moslty overlapping Value at 29556-29724-29892 as it opened higher on Tuesday and continued to probe higher getting into previous week’s selling tail of 29780 to 30167 while forming a spike high of 29990 into the close on Tuesday. This spike was rejected on Wednesday resulting in a fresh leg lower as the auction went on to make new lows for the week at 29202 but gave a sharp bounce back to 29679 and continued to build volumes in this zone on Thursday before giving an initiative move away from here on Friday as it not only made new highs for the week but went on to scale above previous week’s high of 30167 to tag 30277 before closing at 30191. The zone to watch at open for the next week would be 29990 to 30277.