Banknifty has been Bearish for the last two weeks. Now, Bank Nifty is in the support zone.
If we look at the chart now:
Banknifty has successfully broken the bearish trend to the upside. It gave a nice V-shape recovery. But big players have not accumulated the quantity, and that's why there was huge volatility yesterday. The market has taken support at Fib 0.38 of the current minor trend. It is in range bound 47578-47935. if it breaks 47935 to the upside, the market can form a higher high till 48432.
If we look at the OI data:
PCR = 0.86, which shows that next week's market is bullish. That's why big players are accumulating the quantity at lower levels.
There is only a significant level of resistance at 48000—other than that, all levels have very normal CE and PE writing.
I am expecting the market to go bullish for next week's expiry and sideways for tomorrow's session:
Reasons:
Verdict:
Sideways or Bullish
Plan of action:
Sell 48000 CE and Sell 47600 PE (Hedge with 20/- Premium)
If we look at the chart now:
Banknifty has successfully broken the bearish trend to the upside. It gave a nice V-shape recovery. But big players have not accumulated the quantity, and that's why there was huge volatility yesterday. The market has taken support at Fib 0.38 of the current minor trend. It is in range bound 47578-47935. if it breaks 47935 to the upside, the market can form a higher high till 48432.
If we look at the OI data:
PCR = 0.86, which shows that next week's market is bullish. That's why big players are accumulating the quantity at lower levels.
There is only a significant level of resistance at 48000—other than that, all levels have very normal CE and PE writing.
I am expecting the market to go bullish for next week's expiry and sideways for tomorrow's session:
Reasons:
- RSI is 40-60 shows the market is going to be sideways.
- Price ~= EMA (13) but less than 200 EMA, which shows the market still has to break 200 EMA to go bullish.
- PCR = 0.86 shows a bullish sign for tomorrow. But as it is the 1st day of the expiry session, it will not make much difference.
- The market taking support from the Lower channel of Vwap means bulls are getting strength.
- The market has already given a breakout after little accumulation; soon, it will shoot to the upside.
- Market has been providing good volume at buying candles shows upcoming bullish market structure.
Verdict:
Sideways or Bullish
Plan of action:
Sell 48000 CE and Sell 47600 PE (Hedge with 20/- Premium)
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