As we discussed, BANKNIFTY opened a gap-down and took a reversal till EMA(50) and spent sideways in 2nd half.
If we look at the chart now:
The market has taken resistance again at 50 EMA (30-min TF). Right now, the market is consolidating in the marked channel. I expect the market to consolidate one more day, and as it is forming a FLAG and POLE structure, it is upside going to give momentum till 53500 as a target. Also, the market is in the process of forming HNS at the top, which might lead to a fall.
The market is probably going in both directions.
Support levels: 52181, 51809, and 200 EMA and 51295
Resistance levels: 53009, 53500
If we look at the OI data:
PCR = 0.87, which has changed from 0.64, shows bulls are increasing their position and bears wind off some of their positions. 52500 is Max-pain. 53000 is the strong resistance level, with maximum CE writing, and 52000 has strong PE writing, which is going to provide strong support.
The market does not have a clear direction on either side. It breaks will give nice momentum.
Reason:
Verdict: Sideways or Bullish
Plan of action:
wait for the market to break on either side.
Sell 52500 CE and Sell 52500 PE (Hedge it with 20/- premium); exit a loss-making position once it breaks.
If we look at the chart now:
The market has taken resistance again at 50 EMA (30-min TF). Right now, the market is consolidating in the marked channel. I expect the market to consolidate one more day, and as it is forming a FLAG and POLE structure, it is upside going to give momentum till 53500 as a target. Also, the market is in the process of forming HNS at the top, which might lead to a fall.
The market is probably going in both directions.
Support levels: 52181, 51809, and 200 EMA and 51295
Resistance levels: 53009, 53500
If we look at the OI data:
PCR = 0.87, which has changed from 0.64, shows bulls are increasing their position and bears wind off some of their positions. 52500 is Max-pain. 53000 is the strong resistance level, with maximum CE writing, and 52000 has strong PE writing, which is going to provide strong support.
The market does not have a clear direction on either side. It breaks will give nice momentum.
Reason:
- RSI ~ 40-60 indicates sideways momentum.
- Price > EMA(13,50,200) shows bullish structure.
- PCR = 0.87 shows that the market is mildly bearish.
- Price > VWAP shows a bullish market structure.
Verdict: Sideways or Bullish
Plan of action:
wait for the market to break on either side.
Sell 52500 CE and Sell 52500 PE (Hedge it with 20/- premium); exit a loss-making position once it breaks.
Commentaire:
**The market does not have a clear direction on either side. if It breaks will give nice momentum.**
