As we discussed, Banknifty was sideways today.
If we look at the chart now:
The market is trading at 200 EMA, breaking off, which might lead to a double top neck break to the downside. The market is making a rising wedge pattern after a huge fall, which might be a preparation for next fall to the downside if it beaks to the downside. Important support levels will be 47800, 47387, and 47000. on the other hand, 48231, 48445, and 48587 are going to provide a good price action resistance.
If we look at the OI data:
PCR = 0.73, which has fallen from 0.98, which shows huge CE writing on the upper side, indicating a bearish structure in the market. 48000 is maxPain. On the higher side, there is a huge amount of resistance at each level. However, on the lower side, PE writing is less effective, which indicates that the market might fall in the upcoming session.
I am expecting a sideways market inside a rising wedge pattern. If it breaks down, I expect a good bearish move to the 47387 level.
Reason:
Verdict: Sideways inside rising wedge. if breaks to downside Bearish.
Plan of action:
Sell 48200 CE and 48800 PE (Hedge it with 15/- premium)
If we look at the chart now:
The market is trading at 200 EMA, breaking off, which might lead to a double top neck break to the downside. The market is making a rising wedge pattern after a huge fall, which might be a preparation for next fall to the downside if it beaks to the downside. Important support levels will be 47800, 47387, and 47000. on the other hand, 48231, 48445, and 48587 are going to provide a good price action resistance.
If we look at the OI data:
PCR = 0.73, which has fallen from 0.98, which shows huge CE writing on the upper side, indicating a bearish structure in the market. 48000 is maxPain. On the higher side, there is a huge amount of resistance at each level. However, on the lower side, PE writing is less effective, which indicates that the market might fall in the upcoming session.
I am expecting a sideways market inside a rising wedge pattern. If it breaks down, I expect a good bearish move to the 47387 level.
Reason:
- RSI is 40-60 shows the market is going to be sideways.
- Price < EMA(13,200), which indicates weak bulls.
- The market is making a rising wedge pattern. If it breaks to the downside, it's going to give a nice fall.
- The market is making double the top if the price breaks the downside of 200 EMA. There is a high probability of market bearishness.
- price < VWAP shows weak market structure.
Verdict: Sideways inside rising wedge. if breaks to downside Bearish.
Plan of action:
Sell 48200 CE and 48800 PE (Hedge it with 15/- premium)
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