Market Profile Analysis dated 20th Feb

Nifty Feb F:

NF failed to follow up on yesterday’s Neutral Extreme profile as it rejected the spike & opened above 10650 to probe higher tagging 10712 in the ‘A’ period after which the ‘B’ period made an inside bar leaving the exact same IB range of 10712 to 10650 as previous day. (Click here to view the profile chart for better understanding) The auction continued to balance in the ‘C’ period as it made a double inside bar after which the attempt to probe higher in the ‘D’ period was rejected as it left a pull back high at 10710 to signal a reversal as it probed lower in the next 2 periods ‘E’ & ‘F’ getting into the morning singles of 10685-10650 and finding support at 10675. The ‘G’ period then stopped the down move to make a higher low & went on to get above VWAP making another identical high at 10710 where once again the auction got stalled resulting in a narrow range as ‘H’ & ‘I’ periods made inside bars. The ‘J’ period began with a probe higher as NF got above 10710 & IBH to make a new high of 10724 but was promptly rejected back into IB and broke VWAP leaving a probable FA at highs and seemed like we were going to have another spike close as the auction broke below the afternoon pull back low of 10675 and tagged 10663 to close the ‘J’ period at lows. There was no follow up to the downside in the ‘K’ period as NF made an inside bar to close around VWAP after which the auction continued to probe higher in the ‘L’ period as it broke above IBH gaining in momentum on the upside to spike higher in the last 30 minutes as NF even probed above PDH to make a high of 10770. Spike Rules will come into play for tomorrow and the spike reference is 10724 to 10770

• The NF Open was a Open Auction in Range (OAIR)
• The day type was a Normal Variation Day – Up (Spike close)
• Largest volume was traded at 10690 F
• Vwap of the session was at 10700 with volumes of 106.1 L in a session which traded a High-Low range of 10770-10650 for a range of 120 points
• NF confirmed a multi-day FA at 10946 on 12/02 and completed the 2 ATR move down of 10699. This FA has not been tagged and could now act as strong resistance
• NF had left a FA at 10830 on 04/02 and completed the 2 ATR move up of 11073. This FA got tagged on ‘T+7’ days and is no longer support.
• 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 06/02 11046 & 11035 was broken on 08/02 and the closed below them so now they are no longer support levels
• The Trend Day VWAP & POC of 31/01 is at 10793 & 10775 which was broken on 15/02 and the closed below them so now they are no longer support levels
• The VWAP & POC of Jan Series is 10795 & 10823 respectively. The auction closed below this today and remains weak below it.
• The VWAP & POC of Dec Series is 10796 & 10741 respectively. The auction closed below VWAP today and remains weak below it.
• 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 10662-10690-10710

Hypos / Estimates for the next session:

a) NF has closed in a spike so if stays above 10770 at open can test levels of 10785 & 10813
b) Below 10724, NF can move lower to 10701-10690
c) Acceptance above 10813 could bring higher levels of 10830-842 & 10863-876
d) Staying below 10685, the auction gets weak for a move to 10663 & 10650 which if broken will be a bearish sign

BankNifty Feb F:

BNF opened higher rejecting the spike down of the previous day to drive higher by almost 200 points in the ‘A’ period as it tagged 26929. The auction continued to probe higher in the ‘B’ period as it made a new high of 26960 tagging the yPOC of 26945 to give another large IB range of 230 points. (Click here to view the profile chart for better understanding) BNF then began to balance as it made narrow range inside bars in ‘C’ & ‘D’ after which it probed lower in ‘E’ where it made a low of 26847. The ‘F’ period did not give any follow up to the downside and stayed inside ‘E’ and the next period ‘G’ probed higher getting above VWAP and went on to break IBH but got rejected forming a ‘p’ profile for the day. The next 2 periods ‘H’ & ‘I’ stayed inside ‘G’ smoothening the ‘p’ profile and raising chances of a spike coming to the upside. The ‘J’ period started with a move higher making a new day high at 26979 but for the second time in the day the IBH break got rejected as the auction reversed and broke VWAP further declining to get below the pull back low of 26847 to make a low of 26825 leaving ‘J’ period as an outside bar. The ‘K’ period however could not continue the probe lower & made an inside bar to close above VWAP & this was good trigger for BNF to spike higher in the last 30 minutes as it left an extension handle at 26979 and went on to make highs of 27053. Spike Rules will come into play at open tomorrow. BNF has confirmed a multi day FA at 26700 so staying above 26970, the PLR would be to the upside.

• The BNF Open was a Open Auction in Range (OAIR)
• The day type was a Normal Variation Day – Up (‘p’ profile + Spike)
• Largest volume was traded at 26900 F
• Vwap of the session was at 26912 with volumes at 21.1 L in a session which traded a High-Low range of 27053-26730 for a range of 322 points
• BNF confirmed a multi-day FA at 26700 on 20/02 and tagged the 1 ATR move up at 26994. The 2 ATR move up comes to 27288.
• BNF confirmed a FA at 27384 on 12/02 and tagged the 2 ATR move down at 26736 on 15/02. This FA is currently on ‘T+6’ Days
• 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 Jan Series 27236 & 27514 respectively. The auction has closed below both of them.
• The VWAP & POC of Dec Series 26713 & 26832 respectively.
• The VWAP & POC of Nov Series 25686 & 26218 (Spot) respectively

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 26838-26900-26959

Hypos / Estimates for the next session:

a) BNF closed in a spike so if stays above 27055-60 at open can probe higher to 27128-156 & 27189-200
b) Below 26979-970, the auction can move lower to 26900-885 & 26846-825
c) Above 27200, BNF could tag upside levels of 27270-290 and the vPOC of 27335
d) On the lower side, BNF gets weak below 26820 and could move lower to 26760 & 26700

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