Market Profile Analysis dated 28th July 2020

Nifty Jul F: 11306 [ 11323 / 11128 ]

HVNs – 10190 / 10293 / 10475 / 10570 / 10728 / 10764 / 11112

Previous day’s report ended with this ‘The auction then remained in this large IB range of 155 points all day forming a ‘b’ shape profile with a long selling tail from 11166 to 11225 which will be the reference now on the upside. We now have a 5-day composite with Value at 11090-11123-11169 and this balance could soon give way to an imbalance in the coming session(s).‘

NF made an OAIR (Open Auction In Range) start but stayed above the composite POC of 11123 which was an important sign as it probed higher in the ‘A’ period and started to get accepted in previous day’s selling tail while making a high of 11205. The auction then started to coil and the range kept getting narrower till the ‘E’ period but the small buying tail in the IB (Initial Balance) from 11152 to 11128 along with the volumes being built at the composite VAH of 11169 indicated that the PLR (Path of Least Resistance) was to the upside. NF then made a RE (Range Extension) higher in the ‘F’ period as it left an extension handle at 11205 and went on to make new highs for the series at 11260 which was followed by another mini consolidation over the next 3 periods as it formed a DD (Double Distribution) profile and the PBL (Pull Back Low) of 11227 in the ‘J’ period triggered a fresh move higher into the close of almost 100 points as it made a high of 11323 in the ‘L’ period to give a Trend Day Up along with a close in imbalance which could continue.

Click here to view the MP Lite chart NF moving away from the 5-day composite

The NF Open was a Open Auction in Range (OAIR)
The Day type was a Trend Day – Up
Largest volume was traded at 11168 F
Vwap of the session was at 11226 with volumes of 140.3 L and range of 194 points as it made a High-Low of 11323-11128
NF confirmed a FA at 10921 on 20/07 and tagged the 2 ATR objective of 11222 on 23/07. This FA has not been tagged and is now positional support.
NF confirmed a multi-day FA at 10533 on 06/07 and tagged the 2 ATR objective of 10950 on 20/07. This FA has not been tagged and is now positional support.
NF confirmed a FA at 10440 on 02/07 and tagged the 2 ATR objective of 10868 on 13/07. This FA has not been tagged and is now positional support.
NF confirmed a FA at 10172 on 29/06 and and the tagged the 2 ATR target of 10619 on 06/07. This FA has not been tagged and is now positional support.
The 18th June & 01st July Trend Day VWAPs of of 9957 & 10350 would be important support levels.
The settlement day Roll Over point (Jul) is 10240
The VWAP & POC of Jun Series is 10110 & 10110 respectively.
The VWAP & POC of May Series is 9183 & 9109 respectively.
The VWAP & POC of Apr Series is 8999 & 9010 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 11145-11168-11262

Main Hypos for 29.07.2020:

a) NF needs to sustain above 11319 for a rise to 11350 / 11380-400 & 11442-465
b) The auction staying below 11292 could fall to 11251-220 / 11205-190 & 11169-155

Extended Hypos:
c) Above 11465, NF can probe higher to 11485-503 / 11535-565 & 11580-600
d) If 11155 is taken out, NF could fall to 11123-112 / 11090-062 & 11040-010

BankNifty Jul F: 22176 [ 22307 / 21630 ]

HVNs – 21000 / 21345 / 21430 / 21723 / 21840 / 22180 / 22720 / 22806

Click here to view the MP Lite chart of the latest profile of BNF

BNF opened with a small gap up rejecting the spike close of previous day and continued to probe higher as it went on to tag previous day’s prominent POC of 22080 in the ‘A’ period as it hit 22090 but was swiftly rejected resulting in a big move to the downside in the ‘B’ period as the auction not only closed the gap but went on tag the weekly VPOC of 21723 as it made new lows for the week at 21685. The close at lows in the ‘B’ period led to a C side extension as BNF made new lows of 21630 but was quickly sent back from just above the VPOC of 17th July which meant that demand was coming back in this zone. The auction remained in the IB while making a OTF (One Time Frame) move higher till the ‘I’ period as it stalled at yVWAP of 22045 which in turn led to a PBL in the ‘I’ period at 21911 and this triggered a RE to the upside in the ‘J’ period as BNF made new highs of 22127 and in the process confirmed a FA (Failed Auction) at lows. The 1 ATR objective of 22201 was hit in the ‘K’ period along with the 1.5 IB target of 22293 where the auction finally stalled before giving a retracement to the yPOC before closing the day at 22176 leaving a Neutral Day.

The BNF was a Open Auction in Range (OAIR)
The Day type was a Neutral Day(NeuD)
Largest volume was traded at 22020 F
Vwap of the session was at 21960 with volumes of 79.8 L and range of 677 points as it made a High-Low of 22307-21630
BNF confirmed a FA at 21630 on 28/07 and went on to tag the 1 ATR target of 22201 on the same day. The 2 ATR objective from the FA comes to 22772.
BNF confirmed a FA at 20901 on 29/06 and the tagged the 2 ATR target of 22625 on 07/07. This FA has not been tagged and is now positional support.
The 18th June & 01st July Trend Day VWAPs of 20494 & 21650 would be important support levels.
The settlement day Roll Over point (Jul) is 21430
The VWAP & POC of Jun Series is 20918 & 21000 respectively.
The VWAP & POC of May Series is 18767 & 19633 respectively.
The VWAP & POC of Apr Series is 19605 & 19710 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 21747-22020-22130

Main Hypos for 29.07.2020:

a) BNF needs to sustain above 22181 for a rise to 22275 / 22326-375 / 22466-565 / 22620-685 & 22729-772
b)The auction accepting below 22132 could test 22047 / 21960 / 21866-747 / 21630-600 & 21530

Extended Hypos:

c) Above 22772, BNF can probe higher to 22850-918 / 22970-23027 / 23127-230 & 23313-390
d) Breaking below 21530, it could fall to 21417 / 21360-300 / 21240-160 / 21100-021 & 20901

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