BANKNIFTY prediction for tomorrow 2nd JULY
Updated
As we discussed, BANKNIFTY opened a gap-down and took a reversal till EMA(50) and spent sideways in 2nd half.
If we look at the chart now:
The market has taken resistance again at 50 EMA (30-min TF). Right now, the market is consolidating in the marked channel. I expect the market to consolidate one more day, and as it is forming a FLAG and POLE structure, it is upside going to give momentum till 53500 as a target. Also, the market is in the process of forming HNS at the top, which might lead to a fall.
The market is probably going in both directions.
Support levels: 52181, 51809, and 200 EMA and 51295
Resistance levels: 53009, 53500
If we look at the OI data:
PCR = 0.87, which has changed from 0.64, shows bulls are increasing their position and bears wind off some of their positions. 52500 is Max-pain. 53000 is the strong resistance level, with maximum CE writing, and 52000 has strong PE writing, which is going to provide strong support.
The market does not have a clear direction on either side. It breaks will give nice momentum.
Reason:
Verdict: Sideways or Bullish
Plan of action:
wait for the market to break on either side.
Sell 52500 CE and Sell 52500 PE (Hedge it with 20/- premium); exit a loss-making position once it breaks.
If we look at the chart now:
The market has taken resistance again at 50 EMA (30-min TF). Right now, the market is consolidating in the marked channel. I expect the market to consolidate one more day, and as it is forming a FLAG and POLE structure, it is upside going to give momentum till 53500 as a target. Also, the market is in the process of forming HNS at the top, which might lead to a fall.
The market is probably going in both directions.
Support levels: 52181, 51809, and 200 EMA and 51295
Resistance levels: 53009, 53500
If we look at the OI data:
PCR = 0.87, which has changed from 0.64, shows bulls are increasing their position and bears wind off some of their positions. 52500 is Max-pain. 53000 is the strong resistance level, with maximum CE writing, and 52000 has strong PE writing, which is going to provide strong support.
The market does not have a clear direction on either side. It breaks will give nice momentum.
Reason:
- RSI ~ 40-60 indicates sideways momentum.
- Price > EMA(13,50,200) shows bullish structure.
- PCR = 0.87 shows that the market is mildly bearish.
- Price > VWAP shows a bullish market structure.
Verdict: Sideways or Bullish
Plan of action:
wait for the market to break on either side.
Sell 52500 CE and Sell 52500 PE (Hedge it with 20/- premium); exit a loss-making position once it breaks.
Note
**The market does not have a clear direction on either side. if It breaks will give nice momentum.**
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.