Weekly Charts (22nd to 26th February 2021) and Market Profile Analysis

Nifty Spot Weekly Profile (22nd to 26th Feb 2021)

Spot Weekly – 14529 [ 15176 / 14467 ]

Previous week’s report ended with this ‘The weekly profile is a Neutral Extreme one to the downside with yet another prominent POC at 15305 and has overlapping to higher Value at 15125-15305-15415 though the close has been well below the Value. The extension handle of 15029 would be the immediate level to watch on the uspide in the coming week above which the higher references would be the FA af 15144 & the VPOC of 15223 for a probable probe towards 15305 and on the downside, Nifty would remain weak below 14977 and could go for a test of the weekly VPOC of 14810 and the FA of 14714′

Nifty continued the previous week’s imbalance to the downside as it left a Trend Day Down on Monday breaking below the weekly VPOC of 14810 and the FA of 14714 as it made a low of 14635 while spiking into the close. The auction rejected this spike on Tuesday as it formed a narrow range inside bar both in terms of range & value indicating that the selling was getting exhausted and more confirmation of this came on Wednesday open as Nifty gave an initiative move away from Tuesday’s prominent POC of 14747 and went on to match the Trend Day highs of 15010 after which it continued this momentum on Thursday with a big gap up open of almost 100 points as it went on to test the 18th Feb DD singles of 15170 to 15199 but got rejected at 15176 and confirmed a multi-day FA (Failed Auction) with a big gap down open of more than 200 points on Friday where it fell by another 450 points leaving the second Trend Day Down of the week as it made new lows at 14467 before closing at 14529. The weekly profile was once again a Neutral Extreme Down one but this time with completely lower Value at 14613-14739-14901 and the immediate zone to watch in the coming week would be from 14555 to 14467.

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 14555 for a probe to 14613 / 14662 / 14706 / 14777 / 14825 / 14893 & 14945
B) Accepting below 14520 could lead to a test of 14465 / 14381 / 14336 / 14288 / 14214 / 14160 & 14110

NF (Weekly Profile)

14578 [ 15290 / 14521 ]

NF continued the previous week’s imbalance to the downwside as it opened the week with a Trend Day Down but signalled the end of the downmove as it rejected the spike close at open on Tuesday forming an inside bar both in terms of range & value. The auction then gave a move away from this balance on the upside as it left a buying tail in the IB (Initial Balance) on Wednesday followed by a big short covering move in the extended session where it went on to make new highs for the week at 15130. Thursday open saw yet another initiative move higher as NF left another zone of singles in the IB but could not make a RE (Range Extension) higher as it formed a balance in a narrow range forming a ‘p’ shape profile for the day indicating that this move was only cause of shorts being forced to cover and that there was no new demand coming in at these new highs of 15225. It finally made an attempt to spike higher in the ‘K’ period leaving a freak tick of 15290 but was promptly rejected back into the IB with a close just below the prominent POC of the day which was an indication that aggressive supply was back and this was confirmed on Friday as the auction not only opened with a huge gap down of 222 points but went on to leave the second Trend Day Down for the week as it made lows of 14521 into the close leaving the second successive Neutral Extreme profile on the weekly time frame. Value for the week was completely lower at 14602-14812-14924 after NF formed a HVN at 15190 where mostly the distribution happened.


BankNifty Spot Weekly Profile (22nd to 26th Feb 2021)
Spot Weekly – 34803 [ 37232 / 34658 ]

Previous week’s report ended with this ‘The weekly profile is a Neutral Extreme Down one with completely higher Value at 36495-36915-37305 and the first reference on upside would be the immediate extension handle of 36044 wheras on the downside, accepting below 35635 would mean the weakness in BankNifty could continue in the coming week’

BankNifty opened the week with a Trend Day Down as it left an extension handle at 35652 and broke below previous week’s low to tag 35097 and the 1000+ point fall in the day looked a bit extended which led to a small retracement to 35257 into the close on Monday after which the auction made the dreaded C side extension higher on Tuesday where it tested Monday’s reference of 35652 but was rejected after making a high of 35680 and this triggered a fresh move lower resulting in new lows for the week at 34976 in the ‘F’ period but once again the range could not extend further indicating 2 equal forces in play which led to a Neutral Day with a prominent POC at 35189. BankNifty then made a decisive move away from this POC on Wednesday as it drove higher in the IB and went on to make new highs for the week at 36567 and continued this imbalance on Thursday with a gap up open of 321 points after which it went on to make a high of 37232 in the ‘A’ period but marked the end of the leg higher as it made a slow One Time Frame probe lower for the rest of the day making multiple REs in the second half of the day as it made lows right at the weekly VAL of 36495 into the close. This weekly Value however did not hold on Friday open as the auction gapped lower by 742 points negating the entire rise of the last 2 days as it went on to form new lows for the week at 34658 closing the week just the way it had started which is with a Trend Day Down. The weekly profile looks like a DD (Double Distribution) with a big lower distribution containing a very prominent POC at 35220 which would be the important reference on upside. Value for the week was completely lower at 34800-35220-35880 and the close at VAL means that the PLR for the coming week will be to the downside.

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 34857 could rise to 35010 / 35220 / 35373 / 35530 / 35820 / 36178 & 36347
B) Accepting below 34800, the auction could test 34591 / 34305 / 34042 / 33850 / 33700 / 33583 & 33339

BNF (Weekly Profile) 

34870 [ 37325 / 34660 ]

BNF began the week with a Trend Day down as it remained below previous week’s Value and went on to fall by more than 1000 points as it broke below previous week’s low of 35570 while making new lows of 35075 but signalled the end of the imbalance to the downside with a Neutral Profile on Tuesday where it left overlapping POC at 35250 and gave a drive away from here to the upside on Wednesday and made multiple REs to hit new highs for the week at 36650. The auction continued this imbalance to the upside on Thursday with a gap up open after which it made new highs for the week at 37325 but could not extend the IB higher resulting in a OTF probe lower all day which continued on Friday first with a huge gap down open of more than 700 points after which it gave the second Trend Day Down profile of the week as it made new lows of 34660 before closing at 34870 leaving a Neutral Extreme Weekly profile with lower Value at 34785-35250-35910.