Banknifty has been facing resistance at 48000. according to the OI data, 48000 has PCR 0.33, which is very hard resistance to break. 47500 is the intermediate decision point from which it can fall or take support. Today, it was mostly New CE writing and PE roundoff, which shows a bearish trend is nearby. Also, an ascending triangle pattern is formed; if it breaks to the upside, then the trend will continue. But by the time it's inside the ascending triangle, its move is going to be sideways.
Reasons:
Verdict:
Sideways in ascending triangle
Plan of action:
IRON condor with a range of 500 points.
Reasons:
- RSI = 40 decline, which means its weak bull power.
- An ascending triangle Pattern is being formed.
- EMA(200) < Price < EMA(13,50), which means 200 will provide support and 50 EMA upside will provide resistance, which will result in sideways.
- PCR = 0.93, which is mildly Bullish.
- Continued CE writing at higher levels shows bearishness.
Verdict:
Sideways in ascending triangle
Plan of action:
IRON condor with a range of 500 points.
