Weekly Charts (07th to 11th December 2020) and Market Profile Analysis

Nifty Spot Weekly Profile (07th to 11th Dec 2020)

Spot Weekly – 13514 [ 13579 / 13242 ]

Previous week’s report ended with this ‘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

Nifty opened the week with a test of the spike zone of 13250 to 13280 as it made a low of 13242 and left a buying tail in the IB on Monday which set up the week for yet another trending profile on the upside as it formed higher Value for the first 3 days of the week leaving a daily VPOC at 13386 on Tuesday and an extension handle at 13501 on Wednesday where it spiked higher into the close to hit new highs of 13549. The auction then made a rare gap down open on Thursday which was the first one in 14 days as it negated the extension handle and continued to probed lower in the IB making a low of 13399 as it held above the VPOC of 13386 which indicated return of demand and this prevented any Range Extension on the downside which ultimately forced the shorts to cover as Nifty made marginal new highs for the day into the close leaving a Normal Day with a prominent POC at 13426. Friday saw the continuation of this probe higher with an open above PDH resulting in new highs for the week at 13564 in the IB which was followed by a typical C side extension as the auction made new highs of 13579 but could not sustain above IBH indicating exhaustion which first led to a pull back to 13524 and formation of a HVN at 13548 before Nifty gave a big liquidation break in the ‘J’ period followed by some emotional selling in the ‘K’ period as it not only tagged the yPOC of 13426 but almost matched the PDL while making a low of 13403. The move away from Value was very sudden and late in the day with the dPOC at 13548 being a prominent one which was a good base for the 45 degree Rule to play out in the the close as the auction made a move back to 13528 before closing the week at 13514 leaving a Neutral Day with almost the same open & close. The weekly profile is a trending one on the upside with completely higher Value at 13347-13420-13533 and the immediate reference on the downside being the HVN of 13478. On the upside, Nifty will need to get accepted above 13548 for a probe towards 13766 in the coming week(s).

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 13515 for a probe to 13548 / 13573 / 13631 / 13690 / 13729 & 13766
B) Accepting below 13478 could lead to a test of 13420 / 13386 / 13341 / 13292 / 13250 & 13208

NF (Weekly Profile)

13518 [ 13599 / 13265 ]

NF opened lower below last Friday’s spike zone of 13285 to 13327 but made an almost OL (Open=Low) start at 13268 and the defending of the weekly HVN of 13260 indicated the presence of demand as the auction made a swift move back into the spike zone & went on to make multiple REs on the upside as it hit 13398 and continued this imbalance higher on Tuesday where it made new highs of 13456 in the IB but a ‘C’ side extension brought an abrupt end to this upmove as NF then made an retracement to Monday’s VWAP as it made a low of 13352 which was the second instance of demand coming back after which it made a slow probe higher retracing the entire drop and even hit new highs of 13469 before closing around the prominent POC of 13421 leaving a perfect Neutral Centre Day. Wednesday saw a trending move away from this balance in form of a Double Distribution Trend Day Up as the auction made new highs of 13588 but the dPOC for the day also shifted higher to 13570 indicating that the longs had started to book profits. Thursday saw a rare gap down open as NF remained below the yPOC of 13570 confirming that the sellers had taken over and almost went on to tag Tuesday’s VPOC of 13421 as it made a low of 13425 where we got the third instance of demand coming back as a FA got confirmed at lows as the auction not only made new highs for the day but went on to tag the 1 ATR objective of 13580 in the IB on Friday but a ‘C’ side extension which saw new highs of the week at 13594 being rejected meant that the initiative longs were booking out and some laggard longs were entering. NF remained in a narrow range forming a ‘p’ shape profile for the day and even made another attempt to break higher in the ‘G’ period where it made marginal new highs of 13599 but the break of VWAP in the ‘I period led to a huge liquidation move as the auction not only got back into previous day’s range but re-visited that FA of 13425 and tagged the VPOC of 13421 while making a low of 13414 from where it made a quick bounce back to the day’s VWAP into the close leaving the third Neutral profile of the week. The weekly profile is yet another trending one higher with Value at 13352-13446-13526 with a close near the HVN of 13514 which would be the immediate reference in the coming week. On the upside, the higher HVN of 13575 will need to be sustained for the PLR to remain intact.


BankNifty Spot Weekly Profile (07th to 11th 2020)
Spot Weekly – 30605 [ 30812 / 29950 ]

Previous week’s report ended with this ‘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

BankNifty opened in previous week’s Neutral Extreme zone and confirmed a FA at 29950 on Monday indicating that the PLR for the week would remain on the upside as it scaled above previous week’s high of 30162 and made a high of 30354 on Monday leaving a hat-trick of Neutral profiles on the daily. Tuesday continued this trend as it remained in Monday’s range for most of the day before making a marginal new high of 30364 but closed near the prominent POC of 30255 giving a perfect Neutral Centre Day. The auction moved away from this 2-day balance in form of a gap up plus a drive open on Wednesday as it left an extension handle at 30550 to form a Double Distribution Trend Day where it made a high of 30807 and in the process completed the 1 ATR objective of 30613 from the FA of 29950 and this led to a good retracement on Thursday as BankNifty opened lower negating the extension handle of 30550 and made multiple REs to the downside as it tagged Tuesday’s prominent VPOC of 30255 as it made a low of 30202 where it saw return of aggressive demand triggering a big move higher into the close. This imbalance continued on Friday in form of an Open Test Drive as the auction left the largest IB range of the week of 285 points while forming marginal new highs at 30812 in the IB but the failure to extend the range further suggested lack of fresh demand and this led to probe lower in the second half of the day as BankNifty got back into previous day’s range and tagged the yPOC of 30376 as it made a low of 30328 before leaving a balanced profile not just for the day but also the week to close at 30605. Value for the week was completely higher at 30120-30280-30580 but staying below 30580 in the coming week, the auction could execute the 80% Rule filling up the profile till 30280 & 30120.

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 30626 for a probe to 30743 / 30825 / 30921 / 31010 / 31124 & 31235
B) Accepting below 30580, the auction could test 30440 / 30351 / 30280 / 30190 / 30102 & 30021

Extended Weekly Hypos

C) Above 31235, BankNifty can probe higher to 31326 / 31436 / 31589 / 31680 / 31774 & 31860
D) Below 30021, lower levels of 29920 / 29849 / 29720 / 29581 / 29473 & 29350 could come into play

BNF (Weekly Profile) 

30609 [ 30877 / 30021 ]

BNF opened the week with an OAIR start accepting the Neutral Extreme zone of 29990 to 30277 staying in a narrow range of 216 points from 30034 to 30250 in the IB after which it made a typical C side extension lower where it made new lows of 30021 which was swiftly rejected as it went on to confirm a FA at lows indicating that the PLR remains firmly to the upside as it made similar highs at 30444 before closing the day at the dPOC of 30276 leaving a Neutral Centre profile. Tuesday saw the narrowest daily range of the series of just 346 points as the auction continued to form a balance leaving yet another Neutral Centre profile staying mostly in previous day’s range and building volumes around 30300 after which BNF gave a move away from this 2-day composite on Wednesday as it left a buying tail in the IB as it left couple of extension handles at 30589 & 30690 completing the 1 ATR objective of 30660 from the FA of 30021 and followed it up with a Double Distribution Trend Day Up as it made new highs of 30877. The dPOC however shifted higher to 30770 on Wednesday which meant profit booking as the auction made a lower open on Thursday and continued to probe lower negating the extension handles of the DD and made multiple REs lower as it entered the 2-day composite of 7th-8th Dec and made lows of 30255 which was the VWAP of the 2-day composite mentioned above. Demand returned in a big way at these new lows giving big move into the close as BNF not only retraced the entire fall of the day but went on to make new highs for the day at 30690 before closing at 30622 leaving the third Neutral Day of the week in four days and continued this imbalance on Friday as it made the biggest IB range of 285 points for the week with the help of a buying tail from 30741 to 30580 to hit 30865 but could take out the DD highs of 30877 which meant that the buyers were running out of fuel. The auction then negated the morning singles & made multiple REs lower as it got back into Thursday’s Value hitting the HVN of 30436 and almost tagged high volume zone near 30300 as it made a low of 30337 where it was swiftly rejected to give a move back to the day’s VWAP before closing the week at 30609. The weekly profile is a well balanced one with completely higher Value at 30180-30330-30630 and a prominent POC at 30330 which would act as a magnet in the coming week if BNF does not get initiative buying volumes above this week’s Value.