As we discussed Nifty yesterday, "Sideways in range bullish after a breakout." nifty gave a breakout in the morning and gave a bull momentum.
Chart data:
The Market has been range-bound in 21500-21750 for quite some time. It has struck the upper range six times now, which makes it easier to break this time.
OI data:
OI data PCR = 1.10 indicates the Market is already in bulls' control. 21800 is a nice resistance zone. Once it's clear, it will also give a breakout to charts, and people will start Writing PE at this level.
Also, the budget announcement is on the 01 FEB 24, which needs to sound good because the election is nearby.
I am expecting the Market to break to the upside and go bullish in upcoming sessions.
Reasons:
Verdict:
Bullish
Plan of action:
SELL 21750 PE (hedge it with Buy 30rs PE)
Chart data:
The Market has been range-bound in 21500-21750 for quite some time. It has struck the upper range six times now, which makes it easier to break this time.
OI data:
OI data PCR = 1.10 indicates the Market is already in bulls' control. 21800 is a nice resistance zone. Once it's clear, it will also give a breakout to charts, and people will start Writing PE at this level.
Also, the budget announcement is on the 01 FEB 24, which needs to sound good because the election is nearby.
I am expecting the Market to break to the upside and go bullish in upcoming sessions.
Reasons:
- Price > EMAs, which shows the Market is in control of bulls.
- RSI > 60, which indicates bulls have enough strength to take it higher.
- Price > VWAP, which indicates the Market is in a balanced phase, making it easier to go higher.
- OI data PCR = 1.10 shows market is bullish.
- The Market has been in range for quite some time. It has already touched this zone 6 times; it shows a higher chance of breaking out.
Verdict:
Bullish
Plan of action:
SELL 21750 PE (hedge it with Buy 30rs PE)
