Hello traders, As we discussed in our last analysis, the market took resistance from the resistance zone, and the result was sideways.
If we look at the chart data now:
The market is taking resistance at 48119. (Why this resistance looks like my last bank nifty analysis). The market is trading at the resistance zone right now. Also, there has been a good momentum without consolidation. There can be a fallback till 47230 or 200 EMA.
There are multiple support points lower side -> 200 EMA, Price action support, Fibonacci 0.38 Level.
If we look at the OI data:
PCR = 0.88 shows bullish sentiments. But if. we look at the change from the previous day, 1.28 - 0.88, it shows bears are continuously increasing their position in the market. Also, there has been a Huge surge at 48000 CE OI, which is going to provide good resistance.
FII and DII data do not show much of the information except that the market might open a small gap-down.
I am expecting the market to get consolidated.
Case 1: Market takes fallback till 200 EMA.
Case 2: Market consolidation in the range 47750 - 48119.
Reasons:
Verdict: The market is in consolidation mode.
Sideways or Bearish
Plan of action:
Case 1: Sell 47700 CE (Hedge it with 20 rs CE).
Case 2: Iron condor in range 47750 - 48119.
If we look at the chart data now:
The market is taking resistance at 48119. (Why this resistance looks like my last bank nifty analysis). The market is trading at the resistance zone right now. Also, there has been a good momentum without consolidation. There can be a fallback till 47230 or 200 EMA.
There are multiple support points lower side -> 200 EMA, Price action support, Fibonacci 0.38 Level.
If we look at the OI data:
PCR = 0.88 shows bullish sentiments. But if. we look at the change from the previous day, 1.28 - 0.88, it shows bears are continuously increasing their position in the market. Also, there has been a Huge surge at 48000 CE OI, which is going to provide good resistance.
FII and DII data do not show much of the information except that the market might open a small gap-down.
I am expecting the market to get consolidated.
Case 1: Market takes fallback till 200 EMA.
Case 2: Market consolidation in the range 47750 - 48119.
Reasons:
- Price taking support 47750 & resistance at 48100. which might lead to sideways behavior.
- RSI < 50 falling shows weak bulls. That might lead to a fall if RSI goes below 40.
- RSI is having hidden bullish divergence. RSI is making LL, and the price is making HH.
- PCR change from 1.28 - 0.88 shows strong power of Bears. Also, there is less PE writing than CE writing.
Verdict: The market is in consolidation mode.
Sideways or Bearish
Plan of action:
Case 1: Sell 47700 CE (Hedge it with 20 rs CE).
Case 2: Iron condor in range 47750 - 48119.
Trade closed: target reached
