Weekly charts (01st to 05th June 2020) and Market Profile Analysis

Nifty Spot Weekly Profile (01st to 05th June 2020)
Spot Weekly – 10142 [ 10178 / 9706 ]

Previous week’s report ended with this ‘The weekly profile resembles a Double Distribution (DD) Trend Up one with completely higher & expanding Value at 9126-9462-9597 but will need to find new volumes above 9604 which is the 1 ATR target from the weekly FA of 8806 to continue the probe higher towards the 1 ATR objective from the FA of 8996 which comes to 9783.’

Nifty took out that 9604 level in style as it not only opened the week with a gap up of 125 points but continued to drive higher tagging the weekly 1 ATR objective of 9783 and also the 30th April VPOC of 9835 in the ‘A’ period itself. The auction continued the probe higher for the first half of the day making multiple REs (Range Extension) till the ‘G’ period where it hit 9931 after which the imbalance started to turn to a balance for the rest of the day which ended as a ‘p’ shape profile with a long buying tail from 9802 to 9580 along with a prominent POC at 9830. Tuesday started with an OAIR (Open Auction In Range) but saw a move away from this POC in the form of a buying tail in the IB as Nifty resumed the upmove giving a late RE in the day & followed it up with multiple REs as it closed around the highs of 9996. As often happens, this imbalance continued at open on Wednesday as the auction gave yet another gap up over 125 points and made a high of 10159 in the ‘A’ period but then the typical OAOR (Open Auction Out of Range) took over as Nifty remained in the IB for almost all day before attempting a RE as late as in the ‘K’ period where it made new highs of 10176 but was swiftly rejected leading to a big fall into the close as the auction made new lows for the day at 10035 and in the process confirmed a FA (Failed Auction) on daily time frame leaving a Neutral Extreme profile. Thursday saw an initiative selling tail being formed in IB for the first time in the week re-confirming the bias as per previous day’s FA to the downside as Nifty then probed lower making multiple REs and tagging the 1 ATR objective of 9972 & the VPOC of 9962 as it made lows of 9944 as early as the ‘G’ period where it got stalled as it made similar lows of 9945 & 9948 in the next 2 periods suggesting that the sellers were losing control over the auction as the day eventually closed as a ‘b’ profile with a prominent POC at 10018. Friday open was well above this POC which meant that the auction once again was looking for an upside probe as it made a high of 10147 in the A period but reversed the probe to the downside in the ‘B’ period as it made new lows for the day at 10073 and went on to make a C side extension which made new lows at 10040 but still managed to stay above previous day’s POC which was an important signal which triggered an OTF (One Time Frame) move higher till the ‘J’ period which saw it testing that FA of 10176 & making a marginal new high for the week at 10178 thus revisting the FA in ‘T+2’ days and closed the week at 10142.

The weekly profile which started with initiative buying went on to close near the highs and represets a composite ‘p’ shape with a long tail at lows above and the Value at 9900-10113-10173 and is all set to continue the probe higher as long as it stays above 10113 in the coming week towards the 2 ATR objectives of 10402 & 10569 from the weekly FAs of 8806 & 8896 respectively which also has the weekly VPOC of 10446 in between.

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

Main Weekly Hypos for Nifty (Spot):

A) Nifty needs to sustain above 10160 for a rise to 10203-249 / 10294-302 / 10355-395 / 10446** / 10503* & 10541-569
B) Staying below 10140, the auction could test 10113 / 10050-41 / 9999-9950 / 9919-00 / 9844-00 & 9752

Extended Weekly Hypos

C) If 10569 is taken out, Nifty can probe higher to 10612-661 / 10713-730 / 10765 / 10813-869 & 10903*-921
D) Break of 9752 could bring lower levels of 9703 / 9654-9605 / 9555-07 / 9462**-09 & 9376-9361

NF (Weekly Profile)

10145 [ 10193 / 9640 ]

NF also has formed a composite ‘p’ shape profile on the weekly with a long buying tail from 9756 to 9640 and completely higher Value at 9870-10074-10164 with a close near the VAH indicating that the PLR (Path of Least Resistance) would be on the upside. The zone of 10100-074 would be the important zone to hold on any test lower as below that the auction could fill up the relatively low volume zone till 9846.

BankNifty Spot Weekly Profile (01st to 05th June 2020)
Spot Weekly – 21034 [ 21619 / 19633 ]

Previous week’s report ended with this ‘On the upside, BankNifty would need to sustain above this week’s high to probe towards the selling tail of 19830 to 20122 which would also complete the 1 ATR objective of 19903 from this week’s FA and acceptance above 20122 could start a fresh leg on the upside

BankNifty opened the week with a gap up of 436 points and negated the selling tail of 19830 to 20122 in the A period itself but spent the entire day in this zone to form a ‘p’ shape profile and continued this balance the next day also for the first half as it started to form an overlapping POC at 20070 levels. The second half on Tuesday the auction give an initiative move away from this Value in the form of an extension handle at 20274 after which it started a trending move to the upside making new highs for the week at 20615 and continued this imbalance on Wednesday even post the gap up as BankNifty rose by a further 1000 points to hit 21619 bring an end to the up move as it got swiftly rejected leaving a tail at top from 21478 to 21619 which was just below the VAL of 30th April, the day when it had confirmed a FA at top which marked the start of the big fall from 21967 to 17105 in May. This rejection then led to a big liquidation move as the auction retraced the entire up move of the day and even went on to make new lows leaving a Neutral Extreme Down profile and continued to probe lower on Thursday as it left singles in the A period at previous day’s POC and went on to leave a bearish extension handle at 20772 and made multiple REs lower in the E, F & G periods where it made a low of 20316 stopping just above the extension handle of 20274 indicating that the demand was coming back here. BankNifty then made a small balance for the last couple of hours forming a DD (Double Distribution) Trend Down profile with the POC shifting lower to 20434. Friday saw a higher opening as the auction filled up the low volume zone of Thursday’s profile in the IB and made a C side RE down where it tested Thursday’s POC of 20434 making similar lows once again in the ‘D’ period which displayed exhaustion and buyers took this opportunity to drive the prices higher confirming a FA at lows and promptly completing the 1 ATR objective of 21143 leaving a Neutral Extreme profile up on the daily as it closed the week at 21034.

The weekly profile is an elongated one with tails at both ends but as the Value was completely higher at 19770-20080-20890 plus the close was well above the VAH, the PLR for the coming week would continue to remain up towards the selling tail of 21478 to 21619 and above it the FA of 21967 and finally the longer and higher selling tail of 21970 to 22544 which would also mark the 2 ATR objective of 22495 from previous week’s FA of 17311.

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

Click here to view the selling tail of 18th March & FA of 30th April in comparism with this week’s high

Main Weekly Hypos for Bank Nifty (Spot):

A) BankNifty needs to sustain above 21098 for a probe to 21150-175 / 21245-390 / 21478-535 / 21611-682 / 21758-853* / 21905-970 & 22055-120
B) The auction has immediate support at 21021 below which it could test 20950-890 / 20833-715* / 20658-578 / 20521-425 / 20375-301 / 20240-150 & 20080-19952

Extended Weekly Hypos

C) Above 22120, BankNifty can probe higher to 22200-275 / 22350-425 / 22501-575 / 22650-726 / 22796-875 / 22953-23040 & 23138*-180
D) Below 19952, lower levels of 19880-801 / 19725-670 / 19600-531 / 19450-397 / 19320-279 / 19157-040 & 18990-855 could come into play

BNF (Weekly Profile) 

21016 [ 21611 / 19450 ]

BNF tagged the 1 ATR target of 19949 from the weekly FA of 19267 on Monday itself & continued to trend higher leaving a Double Distribution Trend Up profile for the week with higher Value at 19708-19968-20826 along with a HVN at 20384. The profile also has a selling tail at top from 21398 to 21611 which needs to be taken out in the coming week for a probable move towards the HVN of 21788 and above it the 2 ATR objective of 22631.