As we discussed NIFTY yesterday, it opened a gap-down and then continued the momentum. If we look at the chart: The market has broken the pattern to the downside. There is 200-ema support at the downside. I am expecting to take a little bounce back (consolidation) and then continue the bearish momentum. 22385 is going to provide very nice PA support. All important levels are marked on the chart. If we look at the OI data: PCR = 0.71, which shows neutral market sentiments. However, in the past three days, OI activity PCR has been falling gradually from 1.34 -> 1.18 -> 0.7. which shows bears are increasing their position in the market very actively. There is not much of the support downside right now. The market may continue the momentum after a little bit of consolidation. The bulls are very weak at this point. I am expecting the market to open a gap-down near 200 EMA and then touch 13 EMA after that fall.
Reasons:
EMA(200) < Price < EMA(13), which indicates Weak bulls structure in the market. (Bearish)
RSI < 40 shows strong bears' power. (Bearish)
PCR = 0.71, which has been falling rapidly from 1.34. shows bears are actively increasing their position size. (Bearish)
Price < VWAP shows a bearish market structure. (Bearish)
Verdict: Bearish Plan of Action: Wait for 13 EMA to touch, then sell 22500 PE (Hedge it with 15/- Premium)
I think the analysis of the PCR ratio is wrong. as a falling PCR ratio indicates call buy is increasing and hence a bullish sign. not here for any criticism. open to discussions.
finnova_
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@vivan147 I really understand pls clear some basics about options chain. while we talk about PCR it's contract writing.
vivan147
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oppss my bad. I saw it as a PCR ratio.
finnova_
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@vivan147, it's okay, pls check basics about the options chain it's components things will be much clear after that.
finnova_
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will update tonight... was busy setting up studio...
vijayadurgapalanisamy
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Sir expected updated chart from you sir,, market reached almost all your levels sir... Next how to move sir plz share analysis