Weekly charts (02nd to 06th November 2020) and Market Profile Analysis

Nifty Spot Weekly Profile (02nd to 06th Nov 2020)

Spot Weekly – 12263 [ 12280 / 11557 ]

Previous week’s report ended with this ‘Nifty gave a bounce back to 11658 into the close before closing the week at 11642 forming a balanced weekly profile with completely lower Value at 11631-11733-11841 and would remain weak below 11631 in the coming week. On the upside, this week’s prominent POC of 11733 would be the first reference to watch above which we have the extension handle of 11814 that needs to be taken out

Nifty opened the week with an OH (Open=High) at 11697 plus a Drive Down on Monday as it probed below previous week’s Value in the IB but could not extend further taking support just above Friday’s low of 11535 which indicated that the sellers were unable to do a good job as the auction formed a ‘b’ shape profile for most part of the day before triggering a short covering move in the ‘K’ period where it made new highs of 11725 stalling just below the prominent weekly POC of 11733 following which it closed the day at 11669 leaving well balanced profile. Tuesday saw a gap up open right at 11733 which was held as Nifty seemed to be absorbing all the supply in this zone and made a slow but steady probe higher as it negated the extension handle of 11814 and formed a ‘p’ shape profile for the day with a close around the day’s prominent POC of 11811 which signalled that the shorts were being forced to exit. The auction made a relatively large IB of 143 points on Wednesday while making new highs of 11920 and saw another failed attempt by the sellers which ended up confirming a FA (Failed Auction) at 11756 and this triggered a fresh imbalance on the upside as Nifty completed the 1 ATR objective of 11927 on the same day itself made a huge gap up of 154 points on Thursday negating the earlier weekly FA of 12025 and continued to trend higher for the rest of the week as it hit 12280 on Friday before giving a very strong close for the week at 12263 taking out the weekly swing high of 12246 made in Feb 2020.

The weekly profile is that of a Trend Up one with overlapping Value at 11574-11820-11928 but the immediate reference in the coming week would be Friday’s POC of 12245 & the daily VPOC of 12073 as this week’s imbalance of 723 points could lead to a balance being formed in Nifty.

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 12295 for a probe to 12336-384 / 12430-485 & 12545-597
B) Accepting below 12245 could lead to a test of 12195-143 / 12073-045 & 11985-928

NF (Weekly Profile)

12261 [ 12279 / 11560 ]

NF started the week with a daily inside bar on Monday but went on to form a Trend Up weekly profile marking higher lows & higher highs on all days of the week as it gave a stupendous 719 point range with the majority of the move coming post the confirmation of a daily FA at 11744 on Wednesday. Value for the week was overlapping at both sides at 11562-11818-12032.

BankNifty Spot Weekly Profile (02nd to 06th Nov 2020)
Spot Weekly – 26799 [ 26853 / 24120 ]

Previous week’s report ended with this ‘This week’s Value was overlapping to lower at 23850-24050-24430 and staying below 24050, the PLR for the coming week would remain to the downside

BankNifty was more aggressive of the 2 indicies as it not only opened with a huge gap up of 467 points on Monday but gave a Trend Day Up easily climbing above previous week’s high as it got into the selling tail from 24918 to 25232 of 31st Aug while making a high of 25139. This imbalance continued on Tuesday first in form of another gap up of 215 points after which it continued to make a OTF (One Time Frame) move higher all day before spiking into the close as it tagged 25760. Wednesday saw the return of balance after the rise of 1859 points in 2 sessions as BankNifty formed a Neutral Day with overlapping Value and a prominent POC near 25500 but this balance turned out to be just a pause as we got the third big gap up of the week on Thursday as the auction opened higher by 403 points and recorded fresh highs for the week at 26375 but formed a balanced neutral profile for the day with a range of just 375 points indicating that the market was catching up on it’s breath after the long sprint. Friday saw the buyers back in control at open as BankNifty moved away from previous day’s POC in the IB (Initial Balance) and in the process left a buying tail from 26305 to 23135 and followed it up with multiple REs (Range Extension) on the upside as it made new highs of 26853 before closing the week at 26799. The weekly profile is an elongated one thanks to the huge range of 2733 points with Value at 24120-25500-26080 and there is good chance of this week’s imbalance leading to a balance being formed in the coming week.

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 26830 for a probe to 27090-160 / 27280-390 / 27474-594 & 27680-798
B) Accepting below 26740, the auction could test 26650-525 / 26400-267 / 26080 / 25973 & 25820

Extended Weekly Hypos

C) Above 27798, BankNifty can probe higher to 27890-975 / 28125-232 / 28390-535 & 28645
D) Below 25820, lower levels of 25660 / 25500 / 25358-224 / 25139 & 25000 could come into play

BNF (Weekly Profile) 

26749 [ 26845 / 24100 ]

BNF opened the week with a Trend day up on Monday as it complimented the gap up of 321 points with a 1063 points salute scaling above previous week’s high to tag 25163 and continued this imbalance on Tuesday as it rose by a further 570 points to hit 25735 which was followed by new weekly highs of 25788 at open on Wednesday but could not sustain above PDH confriming an end to the imbalance of the last 3 days as it formed overlapping Value on both sides giving a nice 2-day balance with a prominent POC at 25466. The auction then moved away from this POC with another gap up of 382 points on Thursday but remained in a narrow range of just 362 points as it formed the second successive Neutral Day for the week building volumes around 26300 where it eventually closed. Friday saw an initiative move away from this HVN as it made an OTF move higher all day to carve new highs for the week at 26845 giving a perfect close to the trending week. Value for the week overlapping to higher at 24120-25490-26068 with the close of 26749 being far away from Value.