NIFTY prediction for tomorrow (Moday) 11th Dec

Dec 9, 2023

As we have been discussing in our last post, NIFTY's bullish momentum has performed as we discussed. Now, NIfty is facing resistance, as can be seen on the chart. It's still forming a higher High. But it is not able to make a higher LOW, which shows the weakness in the bullish trend. In the OI data, we can see that 21000 is showing huge resistance.
I am expecting a consolidation in the upcoming week in a range of 21000 as resistance 20880 1st support point and 20750 2nd support point.

Reasons:

1. RSI is 40-60, mostly sideways momentum. (sideways)
   
2. Price > EMAs (Bullish)
   
3. 21000 has a huge CE writing (66 Lakh CE) and (44 Lakh PE), which leads to PCR: 0.66, which is not a good sign for bulls.
   
4. FII data also shows more bearishness.
   
5. It has given a huge momentum required to have a consolidation.
   

Verdict:
The market either will go sideways or might correct itself till 20800.

Plan of action:
keep a neutral postion. Sell 21000 CE and protect it with a PUT buy.