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

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

Spot Weekly – 15031 [ 15336 / 14920 ]

Previous week’s report ended with this ‘The weekly profile is an elongated one with mostly higher Value at 14826-15019-15180 with a daily FA at lows & a spike from 15202 to 15273 at the top and has left 3 daily VPOCs at 14744, 14847 & 15131 which would be the important references for the coming week’

Nifty opened on Monday with a gap up around previous week’s POC of 15019 and probed higher but got rejected in an attempt to get above Friday’s high of 15098 as it left a selling tail at top in the IB (Initial Balance) which capped the upside for the day after which the auction made multiple REs (Range Extension) lower as it hit 14919 but formed a balanced 3-1-3 profile for the day as it left a small tail at the lows too. Tuesday saw another higher open but once again there was an initiative selling tail in the IB from 15119 to 15084 which indicated supply coming in and though there was some buying support above Monday’s POC of 15023 for the first half of the day, the sellers were able to push lower in the second half once again making multiple REs as Nifty went on to test previous day’s buying tail while hitting a low of 14925 but was rejected which meant that the buyers were defending this zone and this led to a big short covering rally into the close resulting in new highs for the week at 15127. The auction continued this imbalance with yet another gap up open on Wednesday as it hit 15218 but similar to the previous 2 days left a selling tail in the IB and probed lower for the first half of the day almost closing the gap as it took support at 15101 and remained in this narrow range of 118 points all day to leave a balanced profile with completely higher Value. Nifty kept a clean record of opening with a gap up on all days of the week and reserved the best for the last as it opened higher by 146 points on Friday but as had happened all week left a selling tail in the IB from 15301 to 15336 as it got rejected from the weekly VPOC of 15305 giving an ORR (Open Rejection Reverse) start and went on to leave a massive Trend Day Down with the help of couple of extension handles at 15261 & 15196 as it first swiped though Wednesday’s Value in the ‘I’ period and then went on to complete the 80% Rule in the 5-day composite of 14950-15020-15098 taking support right at the VAL as it left a small tail from 14984 to 14953 before closing the day & week at 15030 around where it opened. The weekly profile inspite of making higher highs on all 4 days seems like a long liquidation one with completely inside Value at 14940-15006-15120 and has a prominent POC at 15006 which would be the reference in the coming week.

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

Click here to view the 5-day composite in Nifty from 3rd to 09th Mar on MPLite

Weekly Hypos for Nifty (Spot):

A) Nifty needs a drive above 15062 for a probe to 15120 / 15196 / 15262 / 15303 / 15350 & 15413
B) Accepting below 15006 could lead to a test of 14940 / 14893 / 14847 / 14744 / 14703 & 14638

NF (Weekly Profile)

15051 [ 15375 / 14927 ]

NF opened the week with a small gap up but remained inside previous week’s Value for the first 2 days building up a 5-day balance with the composite Value at 14960-15042-15136 after which it made a move away from this Value on Wednesday in form of a gap up as it made highs of 15262 but ended up forming a narrow range day as it made a low of 15131 taking support at the composite Value. The auction then made a huge gap up open of 153 points on Friday as it tagged the weekly VPOC of 15344 but got rejected right from the daily VPOC of 15375 (from 16th Feb) triggering a trending move lower of 413 points as it made a low of 14961 stopping right at the VAL of the 5-day composite before bouncing back to the prominent weekly POC of 15040 into the close. This week’s Value is at 14966-15043-15162 which is completely inside previous Value with an ultra prominent POC at 15043 which could continue to act as a magnet in the coming week unless we get initiative volumes confirming a drive away from here.

Click here to view the 5-day composite in NF from 3rd to 09th Mar on MPLite

BankNifty Spot Weekly Profile (08th to 12th Mar 2021)
Spot Weekly – 35496 [ 36497 / 35091 ]

Previous week’s report ended with this ‘Both the Range & Value remained inside previous week giving a ‘b’ shape composite profile with an ultra-prominent & overlapping POC at 35265 which means there is a good chance for a move away from here in the coming week. Value for the week was at 35055-35265-35715′

BankNifty not only opened with a 230 point gap up on Monday but scaled above previous week’s Value too in the IB as it made a high of 35827 but left a selling tail at the top and reversed the probe to the downside playing out the 80% Rule in the weekly Value which got stalled with similar lows being formed at 36095 & 36091 indicating seller exhaustion pushing the auction back to that prominent POC of 35265 into the close. Tuesday open saw a bigger gap up of 430 points as BankNifty tagged 35891 in the IB and went on to make couple of REs to the upside where it hit 36078 as the auction seemed to have got too long and this triggered a liquidation break resulting in new lows for the day at 35545 but this IBL break was swiftly rejected as a daily FA was confirmed with a bounce to 35938 coming into the close. This imbalance to the upside continued at open on Wednesday with the third gap up in 3 days as BankNifty made new weekly highs of 36177 in the IB but left an initiative selling tail as the longs seemed to be booking profits all day which was visible in a narrow range ‘b’ shape profile for the day as the auction took support right at Tuesday’s POC of 35781 and closed near the day’s prominent POC of 35943 and went on to give the biggest gap up open of the week of 559 points on Friday as it not only tagged the 3rd Mar VPOC of 36349 but also completed the 1 ATR target of 36414 from the FA but while it looked above previous week’s high of 36455 it got swifly rejected confirming an ORR (Open Rejection Reverse) on the higher time frame which resulted in a Trend Day Down with a 1309 point fall with BankNifty making low of 35188 before closing the week at 35496. The weekly range was mostly inside previous week but the Value formed slightly higher at 35355-35715-36045 so the auction continues to be in the balance mode with 35718 being the immediate reference on the upside along with the extension handles at 35988 & 36163 whereas on the downside, the zone to watch would be from 35350 to 35250 below which this week’s poor lows of 35090 and the daily VPOC of 34857 could come into play.

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 a drive from 35572 for a rise to 35718 / 35988 / 36233 / 36381 / 36480 / 36756 & 36961
B) Accepting below 35444, the auction could test 35250 / 35090 / 34857 / 34591 / 34410 / 34305 & 34042

BNF (Weekly Profile) 

35522 [ 36554 / 35100 ]

BNF opened the week with a gap up and continued this trend on all days of the week as it left a daily VPOC at 35368 on Monday and a FA at 35604 on Tuesday to continue the probe higher till Friday morning where it gave the biggest gap of the week of almost 500 points and in the process tagged the VPOC of 36480 along with the 1 ATR objective of 36510 marking the end of the upmove. The auction then made a trending move lower of 1347 points from the highs of 36554 as it hit 35206 before closing the week at 35522. On the weekly timeframe, BNF has formed an inside bar with Value at 35400-35955-36120 so the auction currently seems stuck between the HVNs of 34875 to 36000 for the coming week unless a volume expansion triggers a fresh move away from this zone.