Weekly Charts (04th to 07th January 2021) and Market Profile Analysis

Nifty Spot Weekly Profile (04th to 07th January 2021)

Spot Weekly – 14347 [ 14367 / 13954 ]

Previous week’s report ended with this ‘This week’s Value was completely higher at 13875-13920-14007 with a close above VAH so the PLR for the coming week remains to the upside for objectives of 14202 & 14267 as long as the HVN of 13987 is held’

Nifty opened higher on Monday making new ATH of 14114 in the ‘A’ period but settled down into an OAOR (Open Auction Out of Range) leaving a very narrow IB (Initial Balance) range of just 34 points which indicated no fresh demand coming in this zone and the auction probed lower in search of buyers making a big RE (Range Extension) in the D period as it got back into previous week’s range & value even breaking below the HVN of 13987 where it met good responsive buying which was seen in the buying tail from 14004 to 13954. This return of demand attracted more buying as Nifty reversed the probe to the upside and went on to make new highs for the day into the close at 14148 leaving a NeuX (Neutral Extreme) profile for the day. The auction rejected the NeuX zone on Tuesday as it opened lower but took support at previous day’s Value forming similar lows of 14048 in the ‘A’ & ‘C’ periods after which it made a trending move on the upside and even closed in a spike from 14172 to 14215. This imbalance continued in form of a gap up on Wednesday as Nifty hit new highs of 14244 at open but gave an ORR (Open Rejection Reverse) start as it got back into previous day’s range but took support just above the extension handle of 14172 forming a balance till the ‘H’ period which turned to an imbalance in the ‘I’ period as the break of the extension handle saw a quick & big fall leading to a test of previous day’s similar lows of 14048 as the auction hit 14040 where once again it got responsive buying coming in as it left a small buying tail in the ‘J’ period and went on to close the day at 14146. Thursday saw a gap up of more than 100 points but once again the auction made an ORR start from the new highs of 14256 as it remained in previous day’s Value all day building volumes at the 2-day overlapping POC of 14190 before closing in a spike lower from 14157 to 14123. Nifty gave the 4th and the biggest gap up of the week on Friday as it opened at new ATH of 14258 and took support above previous Value in the IB after which it made a RE on the upside leaving an extension handle at 14258 and formed a ‘p’ shape profile for most part of the day and gave a spike higher into the close as it left another extension handle at 14302 and went on to record new highs of 14367 before closing the week at 14347. The weekly profile is a trending one on the upside with completely higher Value at 14061-14193-14217 and has tails at both ends hence the immediate reference for the coming week would be the zone of 14322 to 14367.

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 14367 for a probe to 14401 / 14441 / 14485 / 14535 / 14580 & 14640
B) Accepting below 14341 could lead to a test of 14289 / 14244 / 14193 / 14157 / 14100 & 14063

NF (Weekly Profile)

14371 [ 14379 / 13970 ]

NF opened the week with a gap up but left a selling tail in the IB as it probed lower getting back into previous week’s range & value as it made a low of 13970 but formed a resposive buying tail from 13970 to 14027 as it got rejected from the weekly POC of 14022 and this set up for a Neutral Extreme Close on Monday as it made new highs of 14179. The auction rejected the NeuX zone with a gap down open on Tuesday but a typical C side extension lower confirmed more responsive buying coming in as a FA was confirmed at 14077 triggering a trending move higher for the rest of the day as new highs of 14228 were made. NF continued this imbalance on Wednesday with a gap up open as it completed the 1 ATR objective of 14245 but settled into an OAOR suggesting exhaustion in the upmove and this led to a big liquidation break later in the day as it retraced the entire rise from the FA while making a low of 14078. The FA point being defended meant that the buyers were still active in this zone leading to a good bounce back to 14210 into the close and the auction extended this probe higher at open on Thursday as it made new highs of 14283 in the IB but like the previus day, left a small selling tail which meant that the upside for the day was capped. NF formed a balance for most part of the day building volumes at 14250 before making a late RE to the downside in the ‘I’ period and spiking lower into the close as it hit 14175 giving a nice 2-day Gaussian profile at 14179-14225-14251. Friday signalled a move away from this balance with a gap up open as the auction remained above the 2-day Value and gave a rare C side extension handle at 14291 followed by another one late in the day spiking higher and closing the week in an imbalance. The weekly profile is a trending one on the upside with singles at both ends and completely higher Value at 14098-14222-14250 and the spike close of 14338 to 14379 would be the zone to watch at open in the coming week.


BankNifty Spot Weekly Profile (04th to 07th January 2021)
Spot Weekly – 32084 [ 32298 / 30893 ]

Previous week’s report ended with this ‘The weekly profile represents a composite ‘p’ with completely higher Value at 31120-31300-31340 and has an ultra prominent POC at 31300 which would be the immediate reference for the coming week and staying below it BankNifty could test the FA of 31002 & the daily VPOC of 30729 which if broken could bring the weekly VPOC of 30338 into play. On the upside, the auction needs to form Value above 31340 and get accepted in this week’s selling tail of 31410 to 31510 for a probe towards the 2 ATR objective of 32001 from the FA of 31002

BankNifty opened with a gap up of 260 points on Monday right in previous week’s selling tail where it formed a very narrow IB range of just 137 points but the inability to take out the highs of 31510 meant that the supply was still active in this zone which led to a big 500 point fall in the ‘D’ period as the auction left an extension handle at 31352 and not only completed the 80% Rule in previous week’s Value but went on to break below the FA of 31002 as it made a low of 30893 but the 4-day composite and the super prominent POC of 31300 was still acting like a magnet as BankNifty left a responsive buying tail from 31050 to 30893 to give a bounce back to 31277 into the close. Tuesday saw an open in this buying tail as the auction made a low of 30935 in the A period but once again got rejected confirming an initiative buying tail in the IB as it got back into the weekly Value and with the help of an extension handle at 31192 completed the 80% Rule on the upside in the ‘D’ period. BankNifty then formed a mini-balance building volumes at 31340 absorbing all the supply which was coming in at previous day’s extension handle of 31352 before it made a fresh RE on the upside leaving the second extension handle of the day at 31457 and finally scaled above previous week’s high of 31510 signalling the start of a fresh imbalance as it went on to hit 31767 leaving a Trend Day Up. This imbalance continued for the rest of the week as the auction made a hat-trick of higher opens on the remaining 3 days forming higher Value first on Wednesday where it left a prominent POC at 31823 after which it hit the first objective of 32127 from the composite range of 30893-31510 at open on Thursday where once again it formed completely higher Value but remained in a very narrow range of just 266 points suggesting poor trade facilitation at these new highs. More confirmation of the upmove taking a pause came on Friday as BankNifty opened at new highs of 32298 but made an OH (Open=High) start and got back into previous day’s range & value completing the 80% Rule to the dot as it formed a Gaussian Profile closing the week at 32084 with a Normal Day and for the second consecutive day remained in a narrow range of 295 points. The weekly profile is a Trending One higher with multiple distributions and completely higher Value at 31350-32110-32250 but also has a small tail at top from 32221 to 32298 which needs to be negated for a probe towards the 1 ATR target of 32370 from the monthly FA of 28977 and for new All Time Highs of 32744 in the coming week. On the downside, the prominent weekly POC of 32110 would be the immediate reference below which the important levels would be the daily VPOC of 31823 & the extension handle of 31510.

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 needs to sustain above 32133 for a probe to 32222 / 32311 / 32418 / 32490 / 32575 / 32670 & 32744
B) Accepting below 32032, the auction could test 31956 / 31823 / 31711 / 31596 / 31510 / 31418 & 31338

BNF (Weekly Profile) 

32173 [ 32338 / 30931 ]

BNF opened in previous week’s selling tail of 32458 to 31607 and got rejected from 31599 on Monday after which it left an extension handle at 31430 and not only breezed past the weekly Value but went on to tag the VPOC of 30975 from 28th Dec as it made a low of 30931 taking support just above the PBL of 30897 leaving a big 574 range in the ‘D’ period. The auction then remained in this range forming a balance over the next 18 TPOs before it gave a move away on the upside late on Tuesday leaving an extension handle at 31538 and rose by a further 300 points to give a Trend Day Up confirming a move away from the 6-day composite. BNF continued this imbalance on the upside for the rest of the week with a hat-trick of gap up opens as it made a high of 32338 at open on Friday but saw profit booking coming in as it failed to make a RE on the upside & ended up forming a Gaussian profile for the day with a close around the weekly POC which shifted higher to 32166. The weekly profile is a trending one of 1407 points with an extension handle at 31599 and a PBL at 31662 which would be the important references on the downside in the coming week. Value for the week was mostly higher at 31410-32166-32322 and the auction would need to find fresh demand above 32166 for a fresh leg to the upside.