As we discussed, Banknifty has been falling for the last four sessions. If we look at the charts: The market is reaching near the support trendline, which is going to provide a potential support zone for Banknifty. if we look at the OI: PCR = 0.67 shows the market is in a bearish phase. 47000 is going to provide a good support zone as it has good PE writing and also a logical level of support. On the higher side, above 47500, there is good CE writing at each level.
If we look at the FII & DII data, FII is strong, and bearish clients are bullish, which shows the market is going to open a gap-down.
The market should open a gap down. If the Mmarkettakes support near 46500, then a bullish comeback might be seen in the market
Reasons:
Price < EMAs shows the market is in a bearish phase. And bears are strong.
RSI < 40 shows strong bears' power. (Bearish)
PCR = 0.67, which has been falling rapidly from 1.34. shows bears are actively increasing their position size. (Bearish)
Price < VWAP shows a bearish market structure. (Bearish)
The war situation is also having a negative impact on the market. (Bearish)
Verdict: Bearish
Plan of action: Sell 47000 PE (Hedge with 15/- PE premium)
Trade active
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Bearish entry getting prepared...people can go bearish now....