As we discussed, NIFTY in the video market opened upside to the breakout and continued its momentum to the upside, breaking the resistance and further giving good bullish momentum.
If we look at the chart now:
The market has brake the resistance to the upside. Right now, the market is trading in the uptrending channel. I am expecting resistance from the resistance trendline. The price has yet to reach the level provided after the breakout. Now, there are two possible cases in the market. If it opens up, there can be a correction that can be seen in the market till EMA(13) or 23636. If the market opens near the support zone of 23636, then it can move further to the upside, continuing its momentum.
Support levels: 23636, Support trendline, and 23432
resistance levels: 23828 and resistance trendline.
If we look at the OI data:
PCR = 1.33, which has increased from 1.07, indicates a very bullish market nature. 23500 is MaxPain. On the higher side, there is not as much CE writing as writing on the lower side. The only good CE writing at a higher level is 24000. The market is completely in the bull's favor right now.
I am expecting the market:
Case 1: if the gap opens down, it will take support at 23636 and continue bullish momentum.
Case 2: if opens gap-up near the resistance trendline, it might correct itself by 23636
Reason:
Verdict: Sideways or Bullish
Case 1: if the gap opens down, it will take support at 23636 and continue bullish momentum.
Case 2: if opens gap-up near the resistance trendline, it might correct itself by 23636
Plan of action:
Case 1: Gap-down-> Sell 23500 PE (Hedge it with 10/- premium PE)
Case 2: Gap-up-> Sell 23800 CE (Hedge it with 10/- premium CE)
If we look at the chart now:
The market has brake the resistance to the upside. Right now, the market is trading in the uptrending channel. I am expecting resistance from the resistance trendline. The price has yet to reach the level provided after the breakout. Now, there are two possible cases in the market. If it opens up, there can be a correction that can be seen in the market till EMA(13) or 23636. If the market opens near the support zone of 23636, then it can move further to the upside, continuing its momentum.
Support levels: 23636, Support trendline, and 23432
resistance levels: 23828 and resistance trendline.
If we look at the OI data:
PCR = 1.33, which has increased from 1.07, indicates a very bullish market nature. 23500 is MaxPain. On the higher side, there is not as much CE writing as writing on the lower side. The only good CE writing at a higher level is 24000. The market is completely in the bull's favor right now.
I am expecting the market:
Case 1: if the gap opens down, it will take support at 23636 and continue bullish momentum.
Case 2: if opens gap-up near the resistance trendline, it might correct itself by 23636
Reason:
- RSI > 60 shows bulls are strong
- Price > EMA(13, 50, 200), which indicates the bullish market.
- PCR = 1.33, which has changed from 1.09, indicates bulls are continuously increasing their position in the market.
- price > VWAP shows a Bullish market structure.
Verdict: Sideways or Bullish
Case 1: if the gap opens down, it will take support at 23636 and continue bullish momentum.
Case 2: if opens gap-up near the resistance trendline, it might correct itself by 23636
Plan of action:
Case 1: Gap-down-> Sell 23500 PE (Hedge it with 10/- premium PE)
Case 2: Gap-up-> Sell 23800 CE (Hedge it with 10/- premium CE)
Trade closed: target reached
