Weekly Spot Charts (02nd to 06th Oct 2023) and Market Profile Analysis

Holiday

Nifty opened with a move away from previous week’s balance with a Drive Down as it broke below 28th Sep’s VPOC of 19542 and went on to make a low of 19479 in the Initial Balance (IB) but could not extend any further as it remained in a narrow range for the rest of the day forming a ‘b’ shape long liquidation profile with a close around the prominent POC of 19529 and an initiative selling tail from 19567 to 19623 forming completely lower Value

The auction continued the downside imbalance with a gap down below the 04th Sep extension handle of 19458 and went on to tag the objective of 19417 as mentioned above in the IB while making a low of 19375 and after a brief pause made multiple REs (Range Extension) lower tagging an important objective of 19335 (again given above) and stalling there marking the return of demand which triggered a short covering squeeze back to 19452 into the close

opened with a similar gap as previous session but to the upside as it settled down into an OAOR forming a narrow 39 point range IB between 19508 to 19547 after which sellers made an attempt to extend lower but could only manage similar lows of 19487 in the C & D periods suggesting that the buyers were not letting go forcing a RE to the upside but there also could only manage almost similar highs of 19573 & 19577 and settling near the prominent dPOC of 19554 leaving a Neutral Centre Day with completely higher Value

Nifty opened higher making it a hat-trick of opening with a similar gap as it made an attempt to get back into previous week’s Value but for the second consecutive session formed an OAOR and remained in a mere 35 point range in the IB which was still a bullish signal as the auction was getting accepted in Monday’s initiative selling tail clearly showing that the sellers were losing their grip and more confirmation of this came with multiple REs to the upside triggering the 80% Rule in the weekly Value and tagging the ultra prominent POC of 19675 to the dot and closing yet again around the dPOC of 19651

Holiday

BankNifty opened with an almost OH (Open=High) start at 44561 and confirmed a Drive Down moving away from previous week’s Value as it dropped further by 323 points in the A period itself making a low of 44243 but could not extend any further forming a ‘b’ shape long liquidation profile with an initiative selling tail from 44435 to 44566 and a prominent POC at 44370

The auction continued the downside imbalance with a gap down open of 290 points as it remained below the FA of 44182 and continued to probed lower making a low of 43900 in the IB and made couple of REs but could only manage to hit 43867 taking support just above the weekly HVN of 43863 (14th to 18th Aug) leaving another ‘b’ shape profile for the day with the dPOC shifting down to 43911 indicating that the downside was getting exhausted

The sellers doing a bad job was further confirmed with a higher open of 217 points but BankNifty settled down into an OAOR forming a very narrow 129 point range IB which was followed by a typical C side extension lower to 44108 getting swiftly rejected and triggering a quick bounce back to Monday’s VPOC of 44364 confirming a FA at lows but could not get above the VAH of 44397 closing as a Neutral Centre Day with a prominent POC at 44246

saw another higher open but once again the auction stalled at Monday’s VAH and made a probe lower to 44243 taking support at yPOC and made couple of attempts to extend higher making a high of 44500 but could not take out this week’s initiaitve selling tail forming a Gaussian Curve with overlapping to higher value giving a nice 2-day composite balance with a close right at it’s POC of 44289 and Value at 44226 to 44374 with a good chance to move away from here in the coming session