Market Profile Analysis dated 1st Feb

Nifty Feb F:

NF opened higher continuing the trend day imbalance & stayed above previous day’s range giving an OAOR start probing higher in the first 2 periods tagging the vPOC of 10880 and went on to make a high of 10918 in IB. As often happens after a OAOR, the auction then began to balance between 10875 and 10915 for the next 4 periods after which it gave a range extension to the upside in the ‘G’ period leaving an extension handle at 10915. NF went on to tag the 2 IB extension of 10975 making a high of 10995 in the ‘G’ period after which it gave a dip making a low of 10922 in the ‘H’ period which was just above the confluence of IBH, VWAP & the extension handle and from here the auction reversed to the upside. NF went on to hit a century in the ‘H’ period as it probed higher making new highs at 11023 almost tagging the 3 IB extension and closed at highs. The ‘I’ period saw some balance forming after the stretched profile making an inside bar but closed at the lows and as the ‘J’ period started, NF not only got below the ‘I’ period lows but also broke VWAP triggering a big liquidation break as NF negated that extension handle of 10915 getting back into IB and went to make new lows for the day at 10853. The ‘K’ period continued to probe lower making a low of 10835 completing a 1.5 IB range extension to the downside but was rejected below the IBL which saw the auction reverse and probe higher to get above IBH leaving a FA at 10835 but was not able to sustain above VWAP and gave a close around it giving a Neutral Centre Day.

• • The NF Open was a Open Auction Out of Range
  • The day type was a Neutral Centre Day
  • Largest volume was traded at 10892 F
  • Vwap of the session was at 10918 with volumes of 188 L in a session which traded a High-Low range of 11023-10835 for a range of 188 points 
  • NF had left a FA at 10710 on 04/01 and completed the 2 ATR move up on 15/01 and was strong support. The auction broke below this FA twice this week but has got back above it.
  • NF had left a FA at 10580 on 26/12 & completed the 2 ATR move up to 10862. This FA has not been tagged and is now strong support
  • The Trend Day VWAP & POC of 31/01 10793 & 10775 will be important levels going forward
  • The POC of Jan Series  is 10808
  • The VWAP & POC of Dec Series is 10796 & 10741 respectively
  • The VWAP & POC of Nov Series is 10480 & 10580 respectively.

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 10868-10892-10960

Hypos / Estimates for the next session:

a) NF has immediate support at HVN of 10890, below which it can probe lower to 10875-861 zone and below that to the FA of 10835
b) NF has immediate resistance at 10918 above which it can tag 10930 and 10955
c) If NF sustains above 10955, it can move higher to 10975-980 & 11000
d) Below 10835, the auction gets weaker for a probe to 10820 & 10802
e) NF has strong base at 10793-789 in case of a dip and if broken next important support at 10767

BankNifty Feb F:

BNF made a Open Auction start when it opened around yPOC and probed above previous day highs but was stuck in a narrow range making a 115 point IB with ‘C’ period also staying inside the ‘A’ period range. The auction attempted a break below IBL in the ‘D’ period as it made a low of 27275 but was immediately rejected and the auction went on to probe above the IBH in the ‘E’ period confirming an FA at 27275 but was not able to close above the IBH. The ‘F’ period saw a balance almost making an inside bar but broke the ‘E’ lows just by a bit to leave a pull back low at 27315 as ‘G’ period saw a big move up as BNF rallied from 27344 to 27599 tagging the 2 ATR move up of 27542. The ‘H’ period made an inside bar and the ‘I’ period went on to make a double inside bar indicating that there was some distribution happening at the highs and this got confirmed as soon as the ‘J’ period began as it not only broke below the ‘I’ period lows but went on to break VWAP and get back into the IB and this move triggered a liquidation break as the auction made new lows negating that FA of 27275 and leaving an extension handle there and BNF broke below the trend day VWAP & extension handle of 27156-27150 to make a low of 27103 & closed at 27206. The ‘K’ period continued the move down completing the 1 ATR probe lower of 27008 from that negated FA of 27275 making new lows at 26950 where it was met with rejection to signal the end of the down move for the day. BNF went on to leave a buying tail from 27060-26950 but was not able to get back above VWAP and leaving a pull back high at 27238 which will be the first zone of resistance along with the extension handle of 27275.

• The BNF Open was a Open Auction
• The day type was a Neutral Extreme Day (Down)
• Largest volume was traded at 27340 F
• Vwap of the session was at 27321 with volumes of 43.3 L in a session which traded a High-Low range of 27600-26950 for a range of 650 points
• BNF had confirmed a FA at 27275 today and tagged the 1 ATR level of 27542 to the upside today itself. It went on to break below this FA and completed the 1 ATR of 27008 to the downside but closed above it today. The 2 ATR move down comes to 26742
• BNF had confirmed a FA at 26920 on 29/01 and tagged the 1 ATR level down that day itself. It got above this FA and completed the 1 ATR to the upside and closed above it today. The 2 ATR move up comes to 27408 which got tagged today
• BNF confirmed a FA at 27716 on 23/1 and completed the 2 ATR move down hence is now strong resistance
• The VWAP & POC of Dec Series 26713 & 26832 respectively, today’s close has been around the Dec VWAP
• 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 27195-27340-27590

Hypos / Estimates for the next session:

a) BNF has immediate resistance at 27195 above which it can probe higher towards the extension handle of 27275 and the HVN of 27330
b) BNF has immediate support at 27090-60 below which it can move lower to 27000 & 26950
c) Above 27330, the auction can probe higher to 27410-430 & 27500
d) BNF gets weaker below 26950 for a move down to the vPOC of 26900 & 26800

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