Weekly Charts (01st to 05th February 2021) and Market Profile Analysis

Nifty Spot Weekly Profile (01st to 05th February 2021)

Spot Weekly – 14924 [ 15014 / 13661 ]

Nifty opened in previous week’s spike zone of 13597 to 13728 taking support at 13662 which was an indication that the spike was getting rejected as it got back into previous week’s Value and made multiple REs (Range Extension) higher in the first half testing previous month’s extension handle of 13902 while awaiting the Budget announcement. The auction then gave a big thumbs up to the budget in the ‘H’ period as it made a fresh RE leaving an extension handle at 13906 and went on to breeze through the weekly Value confirming couple of more extension handles at 14110 (entering the monthly Value) & 14214 as it made a high of 14336 leaving a Trend Day with a huge range of 675 points. This imbalance continued on Tuesday with a big gap up of 200 points as Nifty went on to hit 14731 in the IB (Initial Balance) leaving a Normal Day forming a balance around the previous month’s POC of 14570 and made an initiative move away from this POC in the IB on Wednesday where it left a buying tail from 14682 to 14574 and went on to hit new ATH (All Time High) of 14869 forming a ‘p’ shape profile for the day. Thursday saw the first open in 5 days without a gap up as the auction filled up the low volume zone of the previous profile for the first couple of hours which included an attempt to make a RE lower in the D period being rejected after which Nifty left yet another extension handle at 14795 which not only confirmed a FA (Failed Auction) at 14714 but triggered a trending move higher into the close tagging new highs of 14914 and continued this fresh imbalance with yet another gap up on Friday where it completed the 1 ATR objective of 14985 from the FA and went on to hit 15014 but for the first time in the week left A period singles at top in the IB which suggested profit booking by the longs. The auction then formed a perfect Gaussian Profile for the day with a close around the prominent POC of 14928. The weekly profile was a trending one to the upside with Value also completely higher at 14500-14810-14990 but would need to get fresh volumes above 14928 and form Value above 14990 to continue higher with 14868 & the FA of 14714 being the important references on the downside in the coming week.

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

Weekly Hypos for Nifty (Spot):

A) Nifty needs a drive above 14946 for a probe to 14990 / 15045 / 15090 / 15130 / 15191 / 15255 & 15315
B) Accepting below 14920 could lead to a test of 14868 / 14795 / 14743 / 14682 / 14641 / 14575 & 14500

NF (Weekly Profile)

14930 [ 15008 / 13696 ]

NF has formed a trending week higher forming higher highs on all 5 days of the week giving a humungous 1311 point range with a daily VPOC at 13800 and a FA at 14731 which would be the important references on the downside for the rest of the series along with this week’s VWAP of 14544. Value for the week was completely higher at 14348-14848-14996.


BankNifty Spot Weekly Profile (01st to 05th February 2021)
Spot Weekly – 35654 [ 36615 / 30906 ]

BankNifty opened the week with a big gap up of 400+ points as it negated last Friday’s selling tail of 30912 to 31112 in the IB itelf after which it left an extension handle at 31166 and went on to complete the 3 IB objective of 31630 as early as the ‘F’ period. The auction then gave a retracement lower in the ‘G’ period as it left a PBL at 31232 which was followed by a 1100 point upmove in the ‘H’ period as BankNifty left the second extension handle of the day at 31630 and went on to trend higher into the close scaling above previous month’s high of 32842 and almost completing a mind boggling 10 IB objective as it made highs of 33305 leaving a long zone of sinlges from 32301 to 31630 apart from a third extension handle at 32799. Tuesday saw a gap up open of exactly 500 points as the auction continue to propell higher like a rocket and rose by a further 1000 points in the A period hitting new highs of 34652 and took a breather forming a Normal Day and resumed the upmove as it moved away from this balance and the prominent POC of 34042 on Wednesday in the form of a buying tail in the IB from 34258 to 34012 after which it formed a ‘p’ shape profile for the day while hitting new highs for the week at 34908. BankNifty then opened below the POC of this ‘p’ profile on Thursday as it remained in a relatively narrow range of 332 points in the IB but an attempt to break lower into previous day’s buying tail was swiftly rejected resulting in the confirmation of a FA at 34239 and this led to a fresh leg on the upside into the close as the auction left yet another extension handle at 34592 and went on to complete the 1 ATR objective of 35083 in the ‘J’ period after which it spiked higher into the close from the 3 IB target of 35208 to hit new highs of 35413. Friday saw another higher open with a strong drive up as BankNifty formed another 1000 point IB while recording new highs of 36615 but the upmove finally seemed to be exhausting with profit booking also setting in as the auction made a OTF probe lower all day not only retracing the entire IB range but even made new lows for the day at 35545 in the K period before closing the day & week at 35654. The weekly profile is an elongated trending one to the upside thanks to the gigantic 5709 point range with Value also completely higher at 33570-34305-36180 but the close below VAH could mean a balance forming in the coming week with 35190, 34908 & 34239 being the important references on the downside wheras on the upside, BankNifty would need to find acceptance above 35980 above which the levels to watch would be 36264 & 36520.

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

Weekly Hypos for Bank Nifty (Spot):

A) BankNifty sustaining above 35685 could rise to 35980 / 36264 / 36435 / 36550 / 36675 / 36909 & 37249
B) Accepting below 35610, the auction could test 35345 / 35190 / 34908 / 34617 / 34371 / 34239 & 34042

BNF (Weekly Profile) 

35666 [ 36640 / 30942 ]

BNF trended higher this week making new highs on all 5 days leaving a huge 5698 point range with daily VPOCs at 31140 & 35332 along with the main extension handle at 31680 and a daily FA at 34343 which would be the important reference for the rest of the series. Value for the week was completely higher at 33270-34395-35430.