Market Profile Analysis dated 4th Jan

Nifty Jan F:

NF opened with a small gap up which was also an OL (Open=Low) & went above 10745 to tag 10765 but could not test the pull back high of 10787 making a high of 10777 before turning down. The auction then went on to break the OL start of 10740 which meant that the poor lows of yesterday could be tested & after closing the A period at lows, NF broke below 10710 in the ‘B’ period & continued probing lower in the ‘C’ period making a low of 10683 which was broken at the start of ‘D’ period but got swiftly rejected back into the IB leaving a probable FA at 10678. The auction then probed higher one time framing up till the ‘H’ period going past the morning highs thus confirming the FA at lows & made a high of 10793 confirming a Neutral Day but then started to reverse & went on to break VWAP in the ‘J’ period and went lower in the ‘K’ period also but took support at the 10710 level making a pull back low of 10705 before ‘K’ went back above VWAP to close higher followed by the ‘L’ period which made a higher high but could not get above the day highs of 10793. NF closed at the dPOC of 10775 giving a perfect Neutral Day with the Value being totally inside the previous day’s Value with the PLR looking to be up till the pull back low of 10705 & the FA of 10678 is held. The profile on a 2 day composite looks like a ‘b’ profile which means no new selling has come & only the longs have been forced to liquidate.

• • The NF Open was a Open Auction in Range
  • The day type was a Neutral Day
  • Largest volume was traded at 10775 F
  • Vwap of the session was at 10742 with volumes of 127.8 L in a session which traded a High-Low range of 10793-10678 for a range of 115 points 
  • NF had left a FA at 10678 today & and the 1 ATR move up comes to 10803 & the 2 ATR is at 10928
  • 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. It tagged the VWAP on 11/12 but closed above it
  • 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 10727-10773-10785

Hypos / Estimates for the next session:

a) NF has immediate support at 10775-760 & staying above which it can probe 10804 & 10824
b) Below 10775, NF can tag 10755 & 10740
c) Above 10824, NF can probe higher to test first the 10845-850 level and above that 10872
c) Below 10740, NF can tag 10716 & 10705

BankNifty Jan F:

BNF opened with a gap up of 70 points, took support at 27120 level & probed higher to tag 27220 in the ‘A’ period where this move above yVAH was rejected & the auction reversed back in previous day’s Value to probe lower tagging the yPOC of 27100 & the yVAL of 27074 completing the 80% Rule. BNF even probed below previous day lows in the ‘B’ period but was immediately rejected indicating that there were no initiative sellers and after making an inside bar in the ‘C’ period BNF one time framed higher from the ‘D’ period to the ‘J’ period making a high of 27420 completing the 2 IB range extension to the upside. The ‘I’ period made a new high of 27431 after making a lower low at 27350 thus making an outside bar after which BNF made a retracement to VWAP & IBH making a pull back low of 27209 in the ‘K’ period before closing at the HVN of 27360 making higher Value for the day & an outside bar. BNF is in the process of making a nice composite bell profile from 28th Dec and could soon see a move away from this balance.

• • The BNF Open was a Open Auction in Range 
  • The day type was a Normal Variation Day (Up)
  • Largest volume was traded at 27308 F
  • Vwap of the session was at 27261 with highest volumes if this series so far of 37.9 L in a session which traded a High-Low range of 27431-27058 making an outside day for a range of 373 points
  • BNF had closed below the Trend Day VWAP of 21/12 at 27200 yesterday but got back above it today
  • 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 27222-27308-27404

Hypos / Estimates for the next session:

a) BNF has immediate support at 27300 below which it can tag 27260 & 27205
b) Staying above 27370, auction can probe higher to 27430 & 27470.
c) Above 27470, BNF can go past previous week’s high of 27532 & tag 27575 & 27615
d) BNF gets weak below 27135 for a probe to 27060-55 & 27000

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