finnova_

NIFTY Prediction for tomorrow 10 Apr 24

NSE:NIFTY   Nifty 50 Index
NIFTY opened a gap-up and fell sharply from 22768.
If we look at the chart now:
The market is trading at the resistance zone (4H-TF). Also, the market is trading at the support trendline. If the market breaks the support to the downside, it is going to generate a quick fall till 22471. Meanwhile, 22617-22766 is a sideways zone, as marked in the chart.

If we look at the OI data:
PCR = 1.13, which shows bullishness. But yesterday's PCR was 1.34. That shows the Bull's strength is decreasing, and bears are taking hold of the market. Also, there has been a very good CE writing 22700-23000. There was not much of PE writing today. The market is getting ready for some correction.
If we look at the FII & DII data:
FII is bullish; the Client is bearish.
I am expecting a gap-up to open and then a fall.

Reasons:
  1. PCR = 1.18 indicates a bullish structure. (Bullish)
  2. The market is trading in a resistance zone. There is a high probability that the market will have some correction. (Bearish)
  3. Price >> 200EMA and 13EMA >> 200 EMA that might lead to a correction in the market. (Bearish)
  4. RSI is showing bullish divergence, which might force the market to be sideways. (Sideways)
  5. Price < VWAP means the market is in the bears' favor.
  6. RSI ~ 40-60, which indicates a market sideways structure.

Verdict:
SIdeways or bearish

Plan of action:
Sell 22700 CE and Sell 22600 PE (Hedge with 20/- premium)
Exit CE if it breaks the downside.

Finnova
Where Finance meets Innovation
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.