As we discussed, NIFTY opened high at resistance and fell to 200 EMA. After that, it became a roller coaster with a sideways wild move.
If we look at the chart now:
The market is having huge volatility, taking support at 200 EMA again and again, which shows a healthy bullish structure. But at the same time, trading in the zone, which I will suggest option buyers to stay away from.
Support levels: 23432, 23339, and 23250
resistance levels: 23636 and 23828
If we look at the OI data:
PCR = 0.92, which has changed from 1.19, shows mostly profit booking on both sides of the market. If we look at the last 3 hours, there was only CE windoff. 23500 is working as max-pain. 24000 has huge CE writing, which is going to provide good resistance, and on lower levels, 23000 is going to provide very nice support as it has huge PE writing. There has not been any fresh writing today.
I am expecting the market:
Case 1: Sideways in range 23432 - 23636.
Case 2: Go with the breakout on either side; it breaks.
Reason:
Verdict: Sideways or Bearish
Case 1: Sideways in range 23432 - 23636.
Case 2: Go with the breakout on either side; it breaks.
Plan of action:
Case 1: Sideways-> Sell 23500 CE and 23500 PE (Hedge it with 10/- premium CE)
Case 2: Exit the opposite position on either side. It breaks the range.
If we look at the chart now:
The market is having huge volatility, taking support at 200 EMA again and again, which shows a healthy bullish structure. But at the same time, trading in the zone, which I will suggest option buyers to stay away from.
Support levels: 23432, 23339, and 23250
resistance levels: 23636 and 23828
If we look at the OI data:
PCR = 0.92, which has changed from 1.19, shows mostly profit booking on both sides of the market. If we look at the last 3 hours, there was only CE windoff. 23500 is working as max-pain. 24000 has huge CE writing, which is going to provide good resistance, and on lower levels, 23000 is going to provide very nice support as it has huge PE writing. There has not been any fresh writing today.
I am expecting the market:
Case 1: Sideways in range 23432 - 23636.
Case 2: Go with the breakout on either side; it breaks.
Reason:
- RSI 40-60 indicating sideways momentum;
- EMA(13, 50) > Price > EMA(200), which indicates the indicesive market.
- PCR = 0.92, which has changed from 1.19, shows bulls do not have much confidence right now. We might see a bearish move soon.
- Price < VWAP shows a Bearish market structure.
Verdict: Sideways or Bearish
Case 1: Sideways in range 23432 - 23636.
Case 2: Go with the breakout on either side; it breaks.
Plan of action:
Case 1: Sideways-> Sell 23500 CE and 23500 PE (Hedge it with 10/- premium CE)
Case 2: Exit the opposite position on either side. It breaks the range.
Trade closed: target reached:
Market is at target Hit exit.
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