NIFTY analysis for tomorrow 19 Dec 23

Dec 18, 2023

As we discussed yesterday, Nifty moved sideways. It gets rejected from the 21500. OI shows its preparation for the bearish move, as we can also see on the chart. I am expecting it to touch again, make the double top, and then come down.
Reasons:

1. OI has PCR 0.96, which is bullish. But there is a huge CE writing on 21400, 21450, and 21500, which shows that a bearish move is about to come.
   
2. RSI is showing bullish divergence, while RSI is 50 decreasing. Its a sign of weak bull power.
   
3. 21500 is acting as nice Price action resistance; also, OI shows huge CE writing on 21500.
   
4. price > EMAs, which means bulls still have some power.
   
5. 21250 will be acting as a nice price action support point.
   
6. all-important levels have been marked on the chart.
   

Verdict:
Sideways or Bearish

Plan of action:
Sell 21500 CE + Buy 21650 CE