Banknifty prediction for tomorrow 12 July 24

Jul 11

As we discussed, BANKNIFTY gave a good bearish momentum and recovered it from 51800.
If we look at the chart now:
The market was trading in a falling wedge pattern, which indicates the upcoming market is bullish. The market has broken it to the upside. The market has given a very sharp recovery from 51800. I can expect some more bullishness in the upcoming market.

Support levels: 51770, 52032, 200-EMA, VWAP
Resistance levels: 52625, 53100

If we look at the OI data:
PCR = 0.81, which has been increased from 0.60, shows a good streak of bulls. Most of the positions have been rounded off today. There is not much new position addition, only the removal of existing positions.
Reason:

1. RSI ~ 60 shows the Bullish structure of the market.
   
2. Price > EMA(13, 50, 200) shows bullisah market structure.
   
3. PCR = 0.81 shows that the market is bullish.
   
4. Price > VWAP shows a bearish market structure.
   

Verdict: Bullish

Plan of action:
Sell 52300 PE (hedge it with 20/- PE option)

Jul 12

Note

Banknifty also making formation of Inverted HNS where right shoulder is yet to complete. if breaks neck line it's going to be very bullsh; as formation of the Inverted HNS is at the bottom.

Jul 12

Note

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