According to our past discussion, NIFTY had a bearish nature for a couple of days. It had a nice fall today. If we look at the chart, it has broken the HNS Neck to the downside with huge volume pressure. The market might continue to be bearish in the coming days.
If we look at chart 21025, the next support point can be set as target 1 and 20791 as target 2 according to the HNS pattern breakout to the downside and also the price action level.
While looking at the OI data, PCR = 0.63; also, today's OI change shows huge bearishness with Call change = 3.28Cr Put change = -21.82L, which means it was a huge PE windup with additional CE writing. The market is bearish.
Reasons:
Verdict:
Bearish
Plan of action:
Look for a 15-minute candle; make a position based on the PA marked on the chart.
If we look at chart 21025, the next support point can be set as target 1 and 20791 as target 2 according to the HNS pattern breakout to the downside and also the price action level.
While looking at the OI data, PCR = 0.63; also, today's OI change shows huge bearishness with Call change = 3.28Cr Put change = -21.82L, which means it was a huge PE windup with additional CE writing. The market is bearish.
Reasons:
- Nifty is making HNS at the top of the trend, which means upcoming sessions are going to be bearish with target levels marked on the chart. (Bearish)
- Price < EMAs shows the market's bearish nature. (Bearish)
- The market has given the Death crossover, which is a strong signal of a Bearish market. (Bearish)
- OI data PCR = 0.63 shows bearish signal. (Bearish)
- RSI < 40, which shows weakness in bulls strength. (Bearish)
- VWAP is at 21600, which indicates prices are not volume balanced. (sideways)
Verdict:
Bearish
Plan of action:
Look for a 15-minute candle; make a position based on the PA marked on the chart.
