Market Profile Analysis dated 15th Jan

Nifty Jan F:

NF not only opened with a gap up but drove higher getting above previous day high in the opening 15 minutes itself and went on to make highs of 10874 in the ‘A’ period itself. A run of 100+ points since previous close made the profile look at bit stretched and it was time for some balance as the ‘B’ period made a narrow range inside bar after which in the ‘C’ period the auction probed below ‘B’ period lows but got supported at VWAP after which it resumed the OTF upside till the ‘F’ period as it made a high of 10902 completing the 80% rule in previous week’s Value. NF then balanced in a small range building up volumes at 10885 giving a first pull back low at 10876 in the ‘G’ period and went on to make a similar high of 10902 in the ‘I’ period & just when it seemed like a VWAP test could come as NF was not able to make new highs, the auction gave another pull back low at 10881 in the ‘J’ period and went on to get above the poor highs leaving an extension handle at 10902 and spiked higher into the close. The spike of 10913 to 10940 will be the reference for tomorrow’s open.

• • The NF Open was a Open Drive Up
  • The day type was a Normal Variation Day (‘p’ profile plus spike)
  • Largest volume was traded at 10885 F
  • Vwap of the session was at 10880 with volumes of 110.2 L in a session which traded a High-Low range of 10940-10792 for a range of 148 points 
  • NF had left a FA at 10678 on 04/01 and tagged the 1 ATR move of 10803 & closed above it. The 2 ATR target of 10928 was tagged today.
  • NF had left a FA at 10580 on 26/12 & completed the 2 ATR move up to 10862. This FA has not been tagged since the & is now strong support
  • The VWAP & POC of Dec Series 10796 & 10741 respectively
  • The VWAP & POC of Nov Series 10480 & 10580 respectively.
  • The VWAP & POC of 31/10 10250 & 10248 will be important levels going forward

You can check the monthly charts & other swing levels for Nifty & NF here & for the weekly charts & analysis, please click here.

Daily Zones:

• • Value zones (volume profile) are at 10850-10885-10910

Hypos / Estimates for the next session:
a) NF closed in a spike of 10913-10940 so spike rules will apply at open
b) Sustaining above 10940, NF can probe higher to tag 10965 & 10985-995
c) Below the spike low of 10913, NF can test 10890 & 10866
d) 10847-10792 is the buying tail of today & could act as strong support
e) Above 10995, the auction can move higher to 11022-30 & 11055-65

BankNifty Jan F:

BNF opened with a gap up of 50+ points and attempted a drive up as it negated yesterday’s selling tail of 27416-27502 but there were no increase of volumes at the open which stalled its move up in the ‘A’ period itself & it ended up making an IB range of just 115 points inspite of moving away from previous day’s Value. The next 2 periods were inside bars after which BNF attempted to move higher in the ‘D’ period when it tagged the VPOC of 27532 but could not sustain above IBH and probed lower breaking the VWAP and giving a pull back low at 27449 as it got support in the morning singles. BNF then made small rotations between this low & the IBH building up a HVN (High Volume Node) at 27480 in the process and in the ‘J’ period it made a new pull back low of 27436 in the morning buying tail where it was again rejected and after making a inside bar in the ‘K’ period, BNF moved higher into the close tagging the morning high of 27532 leaving a ‘p’ profile and a Normal Day with one of the lowest ranges in BNF which could mean a bigger move is coming soon.

• • • The BNF Open was a Open Drive Up (on low volumes)
    • The day type was a Normal Day (‘p’ profile )
    • Largest volume was traded at 27480 F
    • Vwap of the session was at 27483 with another day with low volumes of just 20.7 L in a session which traded a High-Low range of 27539-27392 for a range of just 147 points which is the lowest in the last 5 months.
    • The VWAP & POC of Dec Series 26713 & 26832 respectively
    • The VWAP & POC of Nov Series 25686 & 26218 (Spot) respectively
    • 31st October’s VWAP of 24895 & POC of 24900 will be important levels going forward

For the Monthly charts & other swing levels for BankNifty & BNF click here & for the weekly charts & analysis, please click here.

Daily Zones:

• • Value zones ( volume profile) are at 27444-27480-27512

Hypos / Estimates for the next session:

a) BNF made a very narrow range day with a prominent POC at 27480 from where it could give a big move away
b) BNF has immediate resistance at 27568 above which it can tag 27620 & 27679
c) Below 27480, the auction can test 27440-435 & the VPOC of 27350
d) Above 27705, BNF can give a fresh leg up to 27785 & 27844

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