NIFTY prediction for tomorrow 30 May

May 29

As we discussed, Nifty had a bearish structure; It has fallen by 187 points.

If we look at the chart now:
The market is trading in the bearish zone. The market is trading near the 0.38 fib level, which might provide a good support zone. But I am expecting the market to further go down till fib 0.50 (22481) levels. All the important levels have been marked on the chart.

If we look at the OI data:
PCR = 0.65 shows a market bearish structure. As tomorrow is NIFTY expiry, 22700 is going to provide a max-pain. There is more call writing on higher levels than PE writing on lower levels. The market is likely to end near 22500.

Looking at the data, NIFTY might go bearish till 200 EMA. .

Reasons:

1. RSI < 40 falling from the upside shows a good bearish strength.
   
2. EMA(13) > Price > EMA(200), which indicates an indecisive or rather sideways market.
   
3. The market has formed a lower high lower low structure in 15-min TH that indicates the market is bearish.
   
4. PCR = 0.65 indicates bearishness.
   
5. Price < VWAP shows that a weak market structure can lead to a bearish market.
   

Verdict: Bearish

Plan of action: 22700 CE (Hedge it with 10/-) if the market continues bearish momentum.

Note: you can target 200 EMA targets.