BANKNIFTY prediction for tomorrow 2nd JULY

1 juil.

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:

1. RSI ~ 40-60 indicates sideways momentum.
   
2. Price > EMA(13,50,200) shows bullish structure.
   
3. PCR = 0.87 shows that the market is mildly bearish.
   
4. 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.

1 juil.

Note

**The market does not have a clear direction on either side. if It breaks will give nice momentum.**