As we discussed the market in the live session, it was bearish. After that, it gave a nice fall.
If we look at the chart now:
Price is Making continuous HH and is not able to make HL. Price is taking support at 200 EMA. This level is also fibbed at 0.23 level, which is considered with 200 EMA, making it a good support zone.
22374 is also a good price action level, and the market has received multiple-time support. RSI has also given a breakout to the upside. That means the market might take support here.
If we look at the OI data:
PCR = 0.76, there is a huge CE writing at higher levels that indicates 22500 is going to be MaxPain. There is not much PE writing today. This indicates that bulls are not very sure the market is going to take support. If we look at today's OI, it is heavy CE writing, which shows bears are making strong levels on the higher side.
If we look at the FII and DII data: FII and DII is strong bearish while Client is strong bulllish, that means market is going to open gap-down.
The market is at a crucial point right now. there can be 2 cases
Case 1: If the market breaks 22360 to the downside (Bearish)
Case 2: If takes support at 200 EMA (Sideways)
Reasons:
Verdict: Sideways or Bearish
Plan of action:
Case 1: If breaks to downside -> Sell 22400 CE (Hedge it with 15/- CE premium)
Case 2: If it takes 200 EMA support -> Sell 22400 CE & PE (Hedge it with 15/- premium)
If we look at the chart now:
Price is Making continuous HH and is not able to make HL. Price is taking support at 200 EMA. This level is also fibbed at 0.23 level, which is considered with 200 EMA, making it a good support zone.
22374 is also a good price action level, and the market has received multiple-time support. RSI has also given a breakout to the upside. That means the market might take support here.
If we look at the OI data:
PCR = 0.76, there is a huge CE writing at higher levels that indicates 22500 is going to be MaxPain. There is not much PE writing today. This indicates that bulls are not very sure the market is going to take support. If we look at today's OI, it is heavy CE writing, which shows bears are making strong levels on the higher side.
If we look at the FII and DII data: FII and DII is strong bearish while Client is strong bulllish, that means market is going to open gap-down.
The market is at a crucial point right now. there can be 2 cases
Case 1: If the market breaks 22360 to the downside (Bearish)
Case 2: If takes support at 200 EMA (Sideways)
Reasons:
- Price ~= EMAs, indicates the market can take support at 200 EMA. (Sideways)
- RSI < 50 shows weak bulls, indicating a sideways market. (Sideways)
- RSI trendline break might activate some bulls might lead to sideways market. ( Sideways)
- OI = 0.76 has a fall from 0.96, which means bears are increasing their positions. (Bearish)
- Price < VWAP indicates the bearish market structure. (Bearish)
Verdict: Sideways or Bearish
Plan of action:
Case 1: If breaks to downside -> Sell 22400 CE (Hedge it with 15/- CE premium)
Case 2: If it takes 200 EMA support -> Sell 22400 CE & PE (Hedge it with 15/- premium)
