As we discussed yesterday, Banknifty gave a breakdown and also moved nicely. OI PCR has shifted from 1.17 to 0.80, which indicates huge bearishness. After the breakout, we observed that volume increased significantly at each candle. If we see a 1-day timeframe, we can see it's a confirmed gravestone dogi pattern, which is formed at the top of the trend and shows huge bearishness. We could not achieve our bearish target today; hopefully, it will be achieved tomorrow.
Reasons:
Verdict:
Bearish
Plan of action:
Sell 47200 PE, protect it with hedging.
Reasons:
- RSI < 40 (Bearish)
- successful breakout to the downside. (Bearish)
- continuous increasing of volume after the breakout. (Bearish)
- PCR: 1.17 -> 0.80, which is a huge fall. Most of the PE writing was rounded off in 1st half day today.
- Price < EMA(13,50) (Bearish)
- Bearish golden crossover. (Bearish)
Verdict:
Bearish
Plan of action:
Sell 47200 PE, protect it with hedging.
