Author: UG

Previous month’s report ended with this ‘This balance & the Neutral profile on the higher timeframe inceases the odds of an imbalance and a big move coming in the month of May

Nifty opened the month with a big gap down of 150 points but remained in previous month’s Value and left an initiative buying tail from 14512 to 14416 on the first day of the month making it’s intentions clear as it gave a trending move higher all month as it not surpassed the ATH (All Time High) of 15431 with ease but also closed around the highs of 15606. Needless to say, the auction formed higher Value on the weekly timeframe as it left a string of weekly VPOCs of 14560, 14685 , 15090 & 15210 which would be the important references in case of any dip(s) in the coming months. The Monthly profile is a Trend Up one with overlapping to higher Value at 14990-15094-15176 along with an extension handle at 15330 and it remains to be seen how far this imbalance on the higher time frame plays out in the coming month.

Click here to view the daily Nifty chart of May on MPLite

Monthly Zones:

The VWAP of the May 2021 series is at 14945 spot and the POC is at 15094
The settlement day (Jun) rollover volume point is at 15396 F.

The VWAP of the April 2021 series is at 14576 spot and the POC is at 14375
The settlement day (May) rollover volume point is at 14925 F.

The VWAP of the March 2021 series is at 14816 spot and the POC is at 14737
The settlement day (Apr) rollover volume point is at 14425 F.

The VWAP of the February 2021 series is at 14893 spot and the POC is at 15115
The settlement day (Mar) rollover volume point is at 15174 F.

The VWAP of the January 2021 series is at 14288 spot and the POC is at 14569
The settlement day (Feb) rollover volume point is at 13809 F.

The VWAP of the December 2020 series is at 13528 spot and the POC is at 13528
The settlement day (Jan) rollover volume point is at 14007 F.

BankNifty Spot –  35525 [ 35584 / 31906 ]

Monthly Profile (May 2021)

Previous month’s report ended with this ‘BankNifty closed the month just the way it started which was with a Neutral Extreme profile but this time it was to the downside as it confirmed a daily FA at 33455 which means the PLR is now to the downside with the monthly Value also forming lower at 31410-32490-33750’

BankNifty continued the imbalance of the 30th Apr’s NeuX (Neutral Extreme) close with a gap down open and almost tagged the 2 ATR objective from the daily FA (Failed Auction) of 33455 as it made a low of 31906 but made a dramatic turnaround into the close as it confirmed another NeuX but to the upside and along with it a new daily FA at lows. The auction then formed a big balance over the next 9 sessions before giving a move away from this composite with a Trend Day Up on 17th May which was followed by another mini balance over the next 3 days after which BankNifty gave the second breakout of the month to the upside on 21st May and scaled above previous month’s high as it entered the third round of balance which continued till the end of the month as it formed a ‘p’ shape profile on 31st May closing around the new highs of 35584. The Monthly profile is a Triple Distribution Trend Up one with overlapping to higher Value with coulple of extension handles at 33510 & 34170 with the monthly POC also shifting higher to 34828 which would be the important references in the coming month.

Click here to view the daily BankNifty chart of May on MPLite

Monthly Zones:

The VWAP of the May 2021 series is at 33568 spot and the POC is at 34828
The settlement day (Jun) rollover volume point is at 35380 F.

The VWAP of the April 2021 series is at 32260 spot and the POC is at 32490
The settlement day (May) rollover volume point is at 33765 F.

The VWAP of the March 2021 series is at 34618 spot and the POC is at 33870
The settlement day (Apr) rollover volume point is at 33250 F.

The VWAP of the February 2021 series is at 35530 spot and the POC is at 35820
The settlement day (Mar) rollover volume point is at 36719 F.

The VWAP of the January 2021 series is at 31597 spot and the POC is at 32062
The settlement day (Feb) rollover volume point is at 30445 F.

The VWAP of the December 2020 series is at 30270 spot and the POC is at 30766
The settlement day (Jan) rollover volume point is at 31389 F.