Nifty Spot – 17662 [ 18252 / 17405 ]
Monthly Profile (January 2023)
Previous month’s report ended with this ‘The Monthly profile has formed an Outside Bar in terms of range with an initiative selling tail from 18782 to 18887 along with an extension handle at 18767 which are now important positional references for 2023 as the year 2022 has closed with a Trend Down Monthly profile with overlapping to higher Value at 18095-18584-18669 and has the daily VPOC of 18020 & FA of 17992 along with 17907 as important references on the downside as we step into a new year whereas on the upside, the extension handle of 18161 along with dPOC of 18227 from 30th would be the immediate levels to watch above which would be the selling extension handle of 18339 & the weekly VPOC of 18492 apart from this month’s POC of 18584
- Nifty opened the month testing the immediate extension handle of 18161 and then the 30th Dec dPOC of 18227 on the first couple of days but could only make marginal buy side extensions and narrow daily range of just 129 & 102 points indicating poor trade facilitation on the upside which brought in the sellers to come back in full force from 04th Jan where it started with an Open Test Drive Down and an A period selling tail from 18167 to 18243 and trended lower for the rest of the week culminating with a Double Distribution Trend Day Down on 06th where it made a low of 17795 but saw the dPOC shifting down to 17822 into the close signalling profit booking.
- The second week started with a short covering ‘p’ shape profile as the auction opened higher trapping the laggard shorts but once again the buyers failed to make a meaningful RE (Range Extension) and left similar highs at 18141 displaying exhaustion and this was taken advantage once again by the sellers who made an Open Drive down on 10th Jan with another A period selling singles from 18030 to 18127 and went on to make new lows for the month at 17761 on 13th Jan but like it did on the 06th saw the dPOC shifting lower to 17827 which was followed by the first good day by the buyers as they managed to leave a Double Distribution Trend Day Up to close the week at 17956.
- The third week started with a gap up in the 10th Jan A period tail which could not sustain leaving a ‘b’ shape long liquidation profile which made a low of 17853 taking support just above the DD’s POC of 17827 marking the presence of demand who then managed to leave a rare A period buying tail from 17926 to 17887 and close in a mini-spike from 18029 to 18072 and continued this upmove with another initiative buying tail on 18th Jan from 18089 to 18032 along with an extension handle at 18132 but formed a balance in the second half of the day leaving multiple similar highs in the zone of 18180 forming a ‘p’ shape profile for the day with the prominent POC at 18167 after which it formed a 5-day balance till the 24th with the composite Value at 18092-18112-18152.
- Nifty then moved away from this balance with an Open Drive Down on 25th Jan where it left an initiative selling tail from 18026 to 18100 and formed an elongated ‘b’ shape profile with the dPOC shifting lower to 17899 into the close and continued the imbalance on 27th with another Open Drive Down and an A period tail from 17781 to 17884 and tagged the upper extension handle of 17612 of the October profile & made new lows for the month at 17493 leaving a Double Distribution Trend Day Down and went on to tag the lower extension handle of 17409 from October the next day but left a responsive buying tail from 17448 to 17405 closing the month with a 3-day balance with Value at 17525-17609-17669 in a build up seen for the upcoming Budget Day session.
The monthly profile remained below December 2022’s VWAP of 18337 and was a nice balanced one for most part before it made a move away from the monthly Value of 17845-17132-18186 on the last 3 days leaving a Normal Variation Month Down which completed the 2 IB objective of 17775 and made a low of 17405 tagging the important monthly extension handle from October 2022. Going forward, Nifty remains weak below 17609 for a test of this month’s buying tail from 17493 to 17405 below which we have the VWAP & VPOC of 17350 & 17260 respectively as the important levels where as on the upside, Nifty would need to sustain above 17669 for a test of the immediate selling singles from 17781 to 17884 above which there is the mid-profile singles from 25th Jan from 17964 to 18016 which will be the zone to watch.
Click here to view the daily Nifty MarketProfile charts of January 2023 on MPLite
Monthly Zones:
The VWAP of the January 2023 series is at 17923 and the POC is at 18132
The settlement day (February 2023) rollover volume point is at 17985 F.
The VWAP of the Decmber 2022 series is at 18337 and the POC is at 18584
The settlement day (January 2023) rollover volume point is at 18299 F.
The VWAP of the November 2022 series is at 18295 and the POC is at 18335
The settlement day (Dec 2022) rollover volume point is at 18650 F.
The VWAP of the October 2022 series is at 17350 and the POC is at 17260
The settlement day (Nov 2022) rollover volume point is at 17800 F.
The VWAP of the September 2022 series is at 17500 and the POC is at 17643
The settlement day (Oct 2022) rollover volume point is at 16837 F.
The VWAP of the August 2022 series is at 17530 and the POC is at 17530
The settlement day (Sep 2022) rollover volume point is at 17580 F.
BankNifty Spot – 40655 [ 43578 / 39419 ]
Monthly Profile (January 2023)
Previous month’s report ended with this ‘BankNifty has formed a Neutral Centre Monthly profile resembling a nice balance with overlapping to higher Value at 42510-43128-43590 closing right in the middle so will need a fresh move away from here with the immediate upside level being the PBH of 43203 along with the daily VPOC of 43310 and the main positional references at 43810, 43927 & the 15th Dec VPOC of 44043 whereas on the downside, 42927 along with 42827 would be the most recent supports apart from the daily VPOCs of 42553 & 42125 as we step enter the year 2023‘
- BankNifty opened the month with 2 Normal Days as the buyers made attempts to extend the IBH of 43362 & 43452 respectively on both days but could only form marginal new highs of 43382 & 43482 after which it made a fresh attempt to probe higher at open on 04th Jan hitting new highs of 43578 but stalled just below the Monthly VAH of 43590 & confirmed an Open Rejection Reverse start leaving an A period selling tail from 43375 to 43578 as the sellers took control for the rest of the week giving 2 more initiative selling tails and hitting new lows of 41877 on 06th Jan.
- The auction then formed a balance over the next 2 weeks after it got some demand coming in on 11th Jan where it left a rare A period buying tail giving a 11-day composite with Value at 41957-42317-42437 from where it looked to move away and made an attempt at the start of the 4th week where it made a higher open and formed a Normal Day with higher Value signalling lack of demand which got more evident the following day where it opened with a probe above PDH & left a small but important A period singles as the sellers once again assumed control and left an extension handle at 42832 forming a Double Distribution Trend Day Down which was just a small trailor of the things to come.
- 25th Jan was the start of a fresh imbalance to the downside as BankNifty not only left an A period selling tail from 42422 to 42733 but swiped through the 11-day composite Value with another mid-profile tail from 42104 to 42382 & a C side extension handle at 42049 as it formed a long liquidation ‘b’ shape profile which was the first of the 1000 pointers to be seen in it which was followed by another huge 1269 points range DD Down profile on the 27th containing another A period selling tail from 40978 to 41417 where it tagged the first of the extension handle from October 2022 of 40650 & made a low of 40148 with the climax of the downmove coming on 30th Jan with the biggest daily range for the month of 1369 points which started with the fourth consecutive initiative selling tail from 41516 to 40789 and hit the other 2 extension handles of 39990 & 39630 while making new lows for the month at 39419 but left a responsive buying tail till 39599 marking the end of the downmove and saw the last day of the month open higher & form a relatively narrow range day completing a 3-day balance with Value at 40202-40301-40895.
The monthly profile is a Normal Variation One to the downside with overlapping to lower Value at 41755-42320-43350 which has closed in a spike down from 41729 to 39419 which also includes a responsive buying tail till 40167 which will be the zone of support for the coming month & failure to hold this could lead to a test of the October 2022 Monthly VPOC of 38950 and the buying tail from 38437 to 37963.
Click here to view the daily BankNifty MarketProfile charts of January 2023 on MPLite
Monthly Zones:
The VWAP of the January 2023 series is at 41965 and the POC is at 42320
The settlement day (February 2023) rollover volume point is at 41864 F.
The VWAP of the Decmber 2022 series is at 43030 and the POC is at 43128
The settlement day (January 2023) rollover volume point is at 43420 F.
The VWAP of the November 2022 series is at 42150 and the POC is at 42959
The settlement day (Dec 2022) rollover volume point is at 43331 F.
The VWAP of the October 2022 series is at 39750 and the POC is at 38950
The settlement day (Nov 2022) rollover volume point is at 415100 F.
The VWAP of the September 2022 series is at 39910 and the POC is at 40790
The settlement day (Oct 2022) rollover volume point is at 37890 F.
The VWAP of the August 2022 series is at 38530 and the POC is at 38320
The settlement day (Sep 2022) rollover volume point is at 39035 F.
