Weekly charts (31st August to 04th September 2020) and Market Profile Analysis

Nifty Spot Weekly Profile (31st Aug to 04th Sep 2020)

Spot Weekly – 11333 [ 11794 / 11303 ]

Previous week’s report ended with this ‘This week’s Value is mostly higher at 11421-11481-11589 and it remains to be seen if this imbalance continues in the coming week or gives way to a balance being formed’ and the report prior to that ended with this ‘The weekly profile represents Triple Distribution with three daily VPOCs at 11206 / 11334 & 11435 and overlapping to higher Value at 11292-11316-11442. The immediate reference on the upside would be Friday’s prominent POC of 11397 and the important support for the coming week would be the overlapping weekly POC of 11310

Nifty opened the week with a gap up of 130 points and went on to complete the 2 ATR objective of 11784 from the weekly FA of 10882 (3rd Aug) while making a high of 11794 and saw big profit booking along with fresh selling as it first left a small selling tail in the IB from 11778 to 11794 and then left couple of extension handles at 11735 / 11714 & 11650 before leaving a PBH at 11602 after which it not only got back into previous week’s range & value but also went on to break below the lows of 11410 falling by a huge 468 points leaving a Trend Day Down on Monday. This big imbalance then led to a balance being formed for the next 2 days as the auction formed Value in the low volume zone of the Trend Day’s profile forming a double inside bar on Wednesday with a prominent POC at 11470. Nifty made an attempt to move away from this balance on Thursday with a slightly higher open but could only make a high of 11585 stalling just below Monday’s PBH of 11602 which was a sign that the initiative sellers of the week are still present after which it formed a balanced profile on the daily in a narrow range of just 77 points as it stayed above previous day’s prominent POC of 11470 but formed another prominent POC at 11556. Friday saw a big gap down open of 173 points as the auction almost tagged the lows of Monday in the opening minutes and settled down into an OAOR staying in a narrow range as it made a high of 11410 in the IB stalling right at previous week’s low indicating that the PLR is very much down. Nifty however left a small buying tail in the IB indicating that the shorts were booking profits as it formed a ‘p’ shape profile for most part of the day and even made couple of REs (Range Extension) higher as it made new highs of 11452 in the ‘I’ period but could not tag the prominent POC of 11470 and went on to spike lower into the close as it made a RE on the downside making new lows for the week and tagging that overlapping weekly POC of 11310 before closing this week at 11333.

The weekly profile represents a big ‘b’ shape long liquidation one with the stem from 11602 to 11794 which would be the supply zone for the rest of the month and had a prominent POC at 11466 which would be the immediate reference on the upside. This week’s Value was overlapping to lower at 11376-11466-11544 but the close below VAL means Nifty remains weak with immediate reference on the downside being the multi-day FA of 11290 below which it could test the daily VPOCs of 11206 / 11116 & 11045 in the coming week.

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 to sustain above 11343 for a rise to 11394 / 11449-466 & 11508-556*
B) The auction staying below 11333 could test 11290-240 / 11206*-164 & 11131-114

Extended Weekly Hypos

C) Above 11556, Nifty can probe higher to 11589-602 / 11650-669 & 11714-735
D) Below 11114, the auction can fall further to 11075-045* / 10993-969* & 10923

NF (Weekly Profile)

11352 [ 11794 / 11310 ]

NF opened with a fourth consecutive weekly gap up as it probed almost 100 points above previous weeks high to tag 11794 in the opening minutes but saw a combination of profit booking as well as big supply coming in at these new highs which led to a huge trending move lower of 444 points as the auction not only got back into previous week’s range & value but went on to break below the lows of 11420 as it hit 11350 before closing the day at 11402 leaving a Trend Day Down on the first day of the week and so early in the new series. The auction then made a small retracement to 11590 on Tuesday stalling just below the daily extension handle of 11602 & the Trend Day PBH of 11615 indicating that the PLR is very much to the downside but left a FA at 11445 on the daily timeframe on Wednesday which led to a short covering move forcing the weak shorts out over the next 2 days as it made a high of 11595 on Thursday completing the 1 ATR objective of 11587 forming similar highs for the third straight day indicating exhaustion on the upside while building volumes at 11564. NF opened with a big gap down of 159 points on Friday but took support just above the Monday lows of 11350 in the IB after which it made a OTF probe higher for most part of the day almost closing the daily gap as it hit 11473 but saw some big liquidation happening into the close resulting in new lows of 11310 for the week as the auction tested the Aug series POC & VWAP combo before closing the week at 11352.

The weekly profile resembles a long liquidation ‘b’ shape with overlapping Value at 11412-11484-11580 but has closed well below the VAL indicating weakness so the PLR for the coming week remains to the downside.


BankNifty Spot Weekly Profile (31st Aug to 04th Sep 2020)
Spot Weekly – 23011 [ 25232 / 22877 ]

Previous week’s report ended with this ‘The weekly profile profile is an elongated trending one with multiple distributions & has left daily VPOCs / HVN at 22811 / 23066 / 23244 / 23601 & 24250 which would be the levels to watch in the coming week. This week’s Value was completely higher at 22650-23610-23850 inside the weekly range of 2202 points and staying above 24250, there is good chance that BankNifty could continue this leg of imbalance on the upside towards the objective of 25111

BankNifty opened with a big gap up of 515 points on Monday and went on to tag the objective mentioned above of 25111 in the opening minutes and even went on to make a high of 25232 which turned out to be a profit booking zone for the longs and this even brought in the initiative sellers into play as the auction went on to almost close the gap up in the IB itself where it made a low of 24625 and left a long selling tail from 24918 to 25232. BankNifty then made a trending move lower starting from a C side extension as it left 3 extension handles at 24625 / 24468 & 24303 where it took a pause leaving a PBH at 24290 before initiating the next leg lower for the day as it fell by another 900 points to make a low of 23385 before closing the day at 23754. The auction then formed a balance over the next 3 days taking support in the zone of 23450-23480 as it left similar lows in this zone but the key signal it left on Thursday was the ORR open as it got rejected after a higher open and left an initiative selling tail from 23845 to 24051 which showed that the sellers were very much in control in the higher timeframe and this was further confirmed with a big gap down open of 411 points on Friday as BankNifty continued to probe lower making a low of 22877 in the IB stalling just above the daily FA of 22858 which was another important reference after which it formed a balance all day making a late RE higher but was unable to close the gap and negate the daily extension handle of 23451 which led to a late sell off in the day as the auction went on to test the morning lows as it hit 22881 before closing the week at 23011.

The weekly profile represents a ‘b’ shape with a prominent POC at 23660 plus a spike lower with which means long liquidation happening in this index on a big scale and even though the weekly Value was overlapping to higher at 23480-23660-24140, the close was much below the Value and this could lead to further downside in the coming week once the HVN of 22811 is taken out with the weekly VPOC of 22290 being the next reference. On the upside, Friday’s prominent POC of 23094 would be the first reference above which we have the daily extension handle of 23451 as the positional supply point for the rest of the month.

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 stay above 23028 for a probe to 23094 / 23208-333 / 23410-480 / 23559-690* & 23772-830
B) Accepting below 22950, the auction could test 22875-811* / 22763-604 / 22501-426 / 22350-290* & 22190

Extended Weekly Hypos

C) Above 23830, BankNifty can probe higher to 23928 / 24025-140 / 24200-290 / 24350-468 & 24555-625
D) Below 22190, lower levels of 22079-017* / 21960-886 / 21828*-767 / 21673-595 & 21486-403 could come into play

BNF (Weekly Profile) 

23026 [ 25270 / 22854 ]

BNF opened the week with a gap up of 361 points and went on to tag the VPOC of 25039 of the 13th March 2020 as it made highs of 25270 in the opening minutes but saw longs booking out along with aggressive shorts being built leading to a big fall of 1899 points as the auction made a OTF (One Time Frame) move lower for the first 6 periods where it made a low of 23930 and left a PBH at 24285 before starting the next leg lower to form lows of 23371 before giving a retracement to 23907 in the last 45 minutes before closing the day at 23743 with the dPOC shifting to 23800. It then formed a balance over the next 3 days building volumes at 23705 before opening with a gap down of 447 points on Friday as BNF continued to probe lower as it made lows of 22882 in the IB from where it gave a retracement to 23440 before hitting new lows for the week at 22854 into the close before closing at 23027.

The weekly profile has mostly higher Value at 23500-23700-24160 but resembles a long liquidation profile with a spike close of 23453 to 22854 which would be the immediate reference for the coming week for a probe lower towards 22800 / 22280 / 21984 & 21595.