Banknifty prediction for tomorrow 10 Apr 24

finnova_ Updated   
NSE:BANKNIFTY   Nifty Bank Index
As we discussed in our last analysis, the market faced resistance from 49960. (Near Fib 1.414)
If we look at the chart now:
The market is trading at ATH. Also, the market is facing resistance in the resistance zone(1H-TF). The market is also showing a Bullish divergence that will force the market to be in the bull's favor. 49000 is a very strong level of resistance. So, the market is likely in the range of 48549-49000.
All important levels are marked on the chart.
If we look at the OI data:
PCR = 1.18 shows bullish sentiments. There is huge CE unwinding at lower levels(48500, 48600) but normal CE writing at higher levels. 48800, 48900, and 49000 had good CE writing. Whereas 48500 is good PE writing. So, 48500 is going to provide good support, and the market is going to face multiple resistance at 48800, 48900, and 49000.

If we look at the FII & DII data:
FII is bullish; the Client is bearish.
I am expecting a gap-up open and then fall from 48950.
  1. PCR = 1.18 indicates a bullish structure. (Bullish)
  2. The market is trading in a resistance zone. There is a high probability that the market will take a pullback here till the Fib 0.38 level. (Bearish)
  3. Price >> 200EMA and 13EMA >> 200 EMA that might lead to a correction in the market. (Bearish)
  4. RSI is showing bullish divergence, which might force the market to be sideways. (Sideways)
  5. Price < VWAP means the market is in the bears' favor.

Verdict: Sideways or Bearish

Plan of action:
Sell 49000 CE and Sell 48600 PE (Hedge with 20/- premium)
Exit either side, and it breaks.

Trade closed: target reached:
target hit might fall to downside now.


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