As we discussed, NIFTY opened sideways, retraced to the downside, and then gave a good bullish momentum to the upside to the target and resistance trendline.
If we look at the chart now:
The market is trading at the resistance level, where it showed a nice sell-off in the last hour yesterday. The price is still above the EMA(13, 50, 200), which shows the market's bullish nature. But last hour's sell-off shows 24000 as a strong resistance near resistance. RSI is also having bearish resistance.
Support levels: 23690, 23636, EMA(50), and Support trendline
resistance levels: 23890 and resistance trendline.
If we look at the OI data:
PCR = 1.27, which has reduced from 1.33, indicates that bears are slowly increasing their position at 24000. Bulls have written PE at each lower level nicely. Also, CE writers have held quite good positions at higher levels. 24000 is going to provide a strong resistance to higher levels.
I am expecting the market to make a double top structure and then fall from 24000.
Reason:
Verdict: Sideways or Bullish
Plan of action:
Note: after making a double top neckline break, you can go bearish.
Sell 24000 CE (Hedge it with 10/- premium CE)
If we look at the chart now:
The market is trading at the resistance level, where it showed a nice sell-off in the last hour yesterday. The price is still above the EMA(13, 50, 200), which shows the market's bullish nature. But last hour's sell-off shows 24000 as a strong resistance near resistance. RSI is also having bearish resistance.
Support levels: 23690, 23636, EMA(50), and Support trendline
resistance levels: 23890 and resistance trendline.
If we look at the OI data:
PCR = 1.27, which has reduced from 1.33, indicates that bears are slowly increasing their position at 24000. Bulls have written PE at each lower level nicely. Also, CE writers have held quite good positions at higher levels. 24000 is going to provide a strong resistance to higher levels.
I am expecting the market to make a double top structure and then fall from 24000.
Reason:
- RSI = 70 shows bulls are strong, but RSI divergence might lead the market to some correction
- Price > EMA(13, 50, 200), which indicates the bullish market.
- PCR = 1.27, which has changed from 1.33, indicates bulls are continuously increasing their position in the market.
- price > VWAP shows a Bullish market structure.
Verdict: Sideways or Bullish
Plan of action:
Note: after making a double top neckline break, you can go bearish.
Sell 24000 CE (Hedge it with 10/- premium CE)
Comment:
Today market is very zig-zag better to stay away.
