I have been busy for the last two days. If you have been following my analysis, we marked a resistance line, which got a breakout yesterday, and after that, it gave a very nice bullish momentum.
Now, if we look at the chart:
The market is already in the breakout phase, but right now, it is sitting at the resistance zone that has been tested multiple times. There is a high probability that Banknifty will be continuing the bullish momentum. But 46100 will be providing good resistance once its broken bull's path is clear to 47000.
If we look at OI data:
PcR = 1.10, which shows the market is very bullish. 46000 has good CE writing, which might provide good resistance, which is also confirmed by Price action. As it's 1st day of the week, OI will not matter much.
FII and DII show bearish on Options, which might lead to some sideways days because, in the future, FII is bullish.
I am expecting the market to get sideways in the range of 45600-46100(color as Cyan). If it breaks 46100 to the upside, I am expecting more bullishness.
Reasons:
Verdict:
Plan of action:
Case 1: Range selling in 45600-46100
Case 2: go bullish if it breaks 46100 to the upside.
Now, if we look at the chart:
The market is already in the breakout phase, but right now, it is sitting at the resistance zone that has been tested multiple times. There is a high probability that Banknifty will be continuing the bullish momentum. But 46100 will be providing good resistance once its broken bull's path is clear to 47000.
If we look at OI data:
PcR = 1.10, which shows the market is very bullish. 46000 has good CE writing, which might provide good resistance, which is also confirmed by Price action. As it's 1st day of the week, OI will not matter much.
FII and DII show bearish on Options, which might lead to some sideways days because, in the future, FII is bullish.
I am expecting the market to get sideways in the range of 45600-46100(color as Cyan). If it breaks 46100 to the upside, I am expecting more bullishness.
Reasons:
- Price > EMAs, which shows the market is strong.
- RSI > 60 shows good strength in the bulls.
- OI data Pcr = 1.10 shows the bullish sign. which is also confirmed by the Price action breakout.
- Price> VWAP, which shows the market is having strength.
Verdict:
- sideways in the range 45600-46100
- Bullish; if breaks 46100 to upside
Plan of action:
Case 1: Range selling in 45600-46100
Case 2: go bullish if it breaks 46100 to the upside.
Trade closed: target reached:
target 1 done
