As we discussed, NIFTY is to be "SIDEWAYS in the range 44600 - 45481" in our last analysis. It resulted in a sideways while facing good resistance on 50-EMA.
Now, if we look into the Chart data, EMA(50) is providing nice resistance. Also, 44500 is Hard SUPPORT, and 45370 is Hard RESISTANCE, resulting in a zonal movement. Also, the market is making a falling wedge pattern, which is bullish.
while OI data PCR= 0.68 shows bearishness while PCR=0.90(next week expiry) shows bullishness. means people are expecting a good budget decision announcement on 1st FEB.
As people are waiting for a budget day, I am expecting the market to be sideways till 1 FEB in the given Zone unless we get a breakout.
Reasons:
Verdict:
Sideways unless it gets breakout.
Plan of Action:
Sell 44500 PE and 45400 CE (hedge it with 35rs premium)
Now, if we look into the Chart data, EMA(50) is providing nice resistance. Also, 44500 is Hard SUPPORT, and 45370 is Hard RESISTANCE, resulting in a zonal movement. Also, the market is making a falling wedge pattern, which is bullish.
while OI data PCR= 0.68 shows bearishness while PCR=0.90(next week expiry) shows bullishness. means people are expecting a good budget decision announcement on 1st FEB.
As people are waiting for a budget day, I am expecting the market to be sideways till 1 FEB in the given Zone unless we get a breakout.
Reasons:
- Market is making falling wedge pattern which is bullish.
- Price < EMAs, which shows bearish market structure.
- RSI ~ 40-60, which shows sideways market momentum.
- EMA 50 and 200 will be acting as resistance.
- An upper resistance trendline will provide good resistance.
- OI data PCR = 0.69 shows Bearish wherelse PCR = 0.90 shows bullish sign in upcoming week.
Verdict:
Sideways unless it gets breakout.
Plan of Action:
Sell 44500 PE and 45400 CE (hedge it with 35rs premium)
Comment:
Buy CE for tomorrow
