Weekly Charts (08th to 12th February 2021) and Market Profile Analysis

Nifty Spot Weekly Profile (08th to 12th Feb 2021)

Spot Weekly – 15163 [ 15257 / 14977 ]

Previous week’s report ended with this ‘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’

Nifty opened with a gap up on Monday and formed higher Value with a prominent POC at 15114 and continued this imbalance with another gap up on Tuesday as it trended higher for most part of the day completing the big objective of 15255 which was the 2 ATR target from the FA of 14714 and left similar highs in this zone indicating exhaustion in the sense the market had gotten too long and this led to a big liquidation move as the auction left a Neutral Extreme Down Day with a prominent POC at 15228 and continued the fall on Wednesday where it left an initiative selling tail in the IB (Initial Balance) and made multiple REs (Range Extension) on the downside making new lows for the week at 14977 testing the weekly VAH and took support there signalling the reversal of probe to the upside as it went on to test the morning selling tail into the close. Nifty opened lower on Thursday but gave an ORR (Open Rejection Reverse) start to the upside forming higher Value for the day as it hit 15188 while leaving a ‘p’ shape profile with a prominent POC at 15150 and stayed above this POC at open on Friday indicating that the PLR (Path of Least Resistance) was still to the upside as it left a narrow IB range of just 66 points and made multiple RE’s in the ‘D’ & ‘E’ periods tagging the VPOC of 15228 as it made a high of 15243 but once again displayed exhaustion as it could not even tag the 1.5 IB extension of 15256 inspite of staying above IB for good time which triggered yet another liquidation move along with fresh selling in the ‘J’ period as the auction went on to make a RE to the downside and promptly completed the 3 IB objective of 15092 while making a low of 15081 where it saw some good profit booking coming in as Nifty bounced back to 15188 before closing the day & week at 15163 leaving a Neutral Day as well as a Neutral Week. The range for this week was very narrow at just 280 points after previous week’s huge move of 1353 points as it formed a nice balance with completely higher Value at 15070-15110-15200 and an ultra prominent POC at 15110 so just as the imbalance led to a balance this week, there is a good chance of the auction returning to imbalance 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 15191 for a probe to 15255 / 15315 / 15376 / 15435 / 15475 / 15510 & 15565
B) Accepting below 15158 could lead to a test of 15115 / 15065 / 14977 / 14928 / 14868 / 14795 & 14743

NF (Weekly Profile)

15161 [ 15266 / 14984 ]

NF has formed a Neutral Centre profile on the weekly timeframe with completely higher Value at 15064-15122-15190 as it remained in a relatively narrow range of just 282 points forming a balance after hitting the 2 ATR objective of 15265 from the FA of 14731 and on the downside took support at previous week’s Value while making a low of 14984 and has closed around the HVN of 15150.

BankNifty Spot Weekly Profile (08th to 12th Feb 2021)
Spot Weekly – 36109 [ 36477 / 35428 ]

Previous week’s report ended with this ‘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′

BankNifty opened the week with a big gap up of 420 points much above the furst reference of 35980 and continued to probe higher as it scaled above 36264 to hit 36466 but left similar highs in the C period and this coupled with the inability to get above the higher weekly reference of 36520 meant that the sellers of last Friday were still very much active in this zone and that the upside was capped. The auction then probed lower making new lows for the day at 35872 and gave an Open Test Drive Down on Tuesday as it went on to tag previous week’s close of 35654 in the IB but left a small buying tail at lows which indicated return of demand and this led to multiple REs to the upside as BankNifty went on to make a marginal new high for the week at 36477 but was swiftly rejected from this well established supply zone as it made a retracement to 35921 before closing the day at 36056 with a prominent daily POC at 36321. Wednesday saw another strong open by the sellers as the auction tested Tuesday’s SOC (Scene Of Crime) of 36222 and gave an ORR to the downside which resulted in new lows of the week being hit at 35428 as BankNifty finally managed to move out of the Friday’s range of 36615 to 35545 but could not close below it as it left a buying tail from 35531 to 35428 to get back to the dPOC of 35902 into the close which gave a hint that the downside for the week was also getting capped. More confrimation of this came on Thursday in form of the narrowest daily range for the month of just 436 points as the auction formed an inside bar and a perfect Gaussain profile leaving a Normal Day with a prominent POC at 35758 and continued to remain in this balance till the IB formed on Friday after which it initiated a move away from this zone with the help of a C side extension handle at 35904 and probed higher completing the 3 IB objective of 36313 in the ‘H‘ period and went on to tag Tuesday’s VPOC of 36321 in the ‘I’ period as it made marginal new highs for the day at 36323 but BankNifty could not sustain the new highs and gave a pull back to 35931 in the ‘J’ period before closing the day right at the prominent dPOC of 36109. The weekly profile as expected formed a nice balance in a narrow zone of just 1049 points as it remained in the 5th Feb profile’s range for most of the 5 days staying below the upper rejection of 36520 to 36615 and has a small buying tail from 35531 to 35428 at the lower end too which would be the bigger references for the coming week as Value was completely inside at 35693-36015-36165.

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 36110 could rise to 36197 / 36295 / 36385 / 36520 / 36675 & 36770 & 36909
B) Accepting below 35610, the auction could test 35345 / 35190 / 34908 / 34617 / 34371 / 34239 & 34042

BNF (Weekly Profile) 

36134 [ 36503 / 35462 ]

BNF remained all week in last Friday’s range of 36640 to 35527 with supply taking over at the higher end with the confirmation of a daily FA at 36503 on Monday after which it probed lower to tag the 1 ATR objective of 35533 on Wednesday where it briefly went below 35527 but was swiftly rejected back as it left a buying tail from 35567 to 35462 which marked the end of the downside probe with the auction forming a nice balanced profile for the week with Value also completely inside at 35730-36000-36225.