As we discussed yesterday, bank nifty took support at 45600 and then moved back to the bullish side with huge volatility.
If we look at the chart data:
The market is trading below the 200 EMA-(30-min TF). which may provide a good resistance at this point. 45700 has proven to be a good support zone. RSI still needs more strength to get a good bullish momentum.
If we look at the OI data:
PCR = 0.82, which shows the market's bullish sentiments. 46000 is going to be MAXPAIN. There is good resistance to CE shorting at each upper level. However, there is not much OI build-up on the lower side.
I am expecting the market to take a bearish momentum till 45700, and then it will take support and pull back stronger.
Reasons:
Verdict:
Sideways
Plan of action:
Make a bull position once the market takes support at 45700.
If we look at the chart data:
The market is trading below the 200 EMA-(30-min TF). which may provide a good resistance at this point. 45700 has proven to be a good support zone. RSI still needs more strength to get a good bullish momentum.
If we look at the OI data:
PCR = 0.82, which shows the market's bullish sentiments. 46000 is going to be MAXPAIN. There is good resistance to CE shorting at each upper level. However, there is not much OI build-up on the lower side.
I am expecting the market to take a bearish momentum till 45700, and then it will take support and pull back stronger.
Reasons:
- 200 EMA > Price > EMA(13), which shows the market has bullish sentiment but not enough strength to make a good bullish move. (sideways)
- 200 EMA is going to provide good resistance at this level for now. (sideways)
- RSI is in the range of 40-60, which is mostly sideways. (sideways)
- The last two candles show a heavy fight between bulls and bearish. (sideways)
- Price >= VWAP, which shows that price is balanced with volume. (Bullish)
- PCR = 0.82, which shows the market's bullish sentiments
Verdict:
Sideways
Plan of action:
Make a bull position once the market takes support at 45700.
