Nifty Spot Volume Profile Analysis: February 2014
What started with all Gloom and Doom ended with a flare as the index saw the lows of 5933.30 within the first 2 days of the month but closed at the highest point at 6276.95, a cool gain of 3.1% on a month on month basis.
The ATR(12) for the month was at 429.17, the lowest of the last 6 months, the range getting squeezed due to low VIX. Maybe it’s time for Volatility to increase with range expansion in the coming months.
The Monthly Spot Profile Values are: VAH-6140, POC-6069, VAL-5998 and Monthly VWAP at 6099.
Nifty Spot as per profile has closed way above the value areas, which though Bullish could see some pullback towards the mean in the coming days. Immediate resistance is the Virgin POC at 6305, and any pullback towards the Value area could be a buying opportunity.
Inference: Buy on Dips around 6160-6180, with Stop Loss below 6140 on Closing Basis…
Bank Nifty Spot Volume Profile Analysis: February 2014
Bank Nifty after 2 months of continuous downside from the top of 12226 seen on 09-12-2013 to the lows of 9944, saw some relief rally but still unable to scale 38.2% retracement level at 10816. The index in the mean while gained 5.1% for the month and a close above 10816 can bring higher levels at 11085 and 11354.
The ATR(12) for the month was at 1377.59, down from previous month by a huge margin. The range for the month was just 849.6 points with the highs pegged at 10793.60 and lows at 9944.
The Monthly Spot Profile Values are: VAH-10488, POC-10216, VAL-9944 and Monthly VWAP at 10394.
Bank Nifty as per profile has closed way above VAH and a re-test of the same is possible in the coming days and only a close below the same, the index will move in the hands of the Bears, till then it’s Buy the dips. Upside resistance right now is placed around the Virgin POC at 11045.
Inference: Bank Nifty though weaker of the 2 indexes is a Buy on Dips till MVAH at 10488 with Stop Loss below VWAP at 10393 on a Closing basis...
What started with all Gloom and Doom ended with a flare as the index saw the lows of 5933.30 within the first 2 days of the month but closed at the highest point at 6276.95, a cool gain of 3.1% on a month on month basis.
The ATR(12) for the month was at 429.17, the lowest of the last 6 months, the range getting squeezed due to low VIX. Maybe it’s time for Volatility to increase with range expansion in the coming months.
The Monthly Spot Profile Values are: VAH-6140, POC-6069, VAL-5998 and Monthly VWAP at 6099.
Nifty Spot as per profile has closed way above the value areas, which though Bullish could see some pullback towards the mean in the coming days. Immediate resistance is the Virgin POC at 6305, and any pullback towards the Value area could be a buying opportunity.
Inference: Buy on Dips around 6160-6180, with Stop Loss below 6140 on Closing Basis…
Bank Nifty Spot Volume Profile Analysis: February 2014
Bank Nifty after 2 months of continuous downside from the top of 12226 seen on 09-12-2013 to the lows of 9944, saw some relief rally but still unable to scale 38.2% retracement level at 10816. The index in the mean while gained 5.1% for the month and a close above 10816 can bring higher levels at 11085 and 11354.
The ATR(12) for the month was at 1377.59, down from previous month by a huge margin. The range for the month was just 849.6 points with the highs pegged at 10793.60 and lows at 9944.
The Monthly Spot Profile Values are: VAH-10488, POC-10216, VAL-9944 and Monthly VWAP at 10394.
Bank Nifty as per profile has closed way above VAH and a re-test of the same is possible in the coming days and only a close below the same, the index will move in the hands of the Bears, till then it’s Buy the dips. Upside resistance right now is placed around the Virgin POC at 11045.
Inference: Bank Nifty though weaker of the 2 indexes is a Buy on Dips till MVAH at 10488 with Stop Loss below VWAP at 10393 on a Closing basis...
