Banknifty prediction for Today 24 May

24 mag

As we discussed, Banknifty gave a very nice momentum with huge bullishness.
If we look at the chart now:
The market has broken the wedge pattern to the upside, and it is also continuously making HH and HL. The price is trading above EMAs, which shows strength in the price. Also, RSI > 60 shows huge bullishness in the market.

If we look at the OI data:
PCR = 1.20, which has risen from 0.73, shows huge PE writing on the Lower side, indicating a bullish structure in the market. The market does not have much CE writing on the higher side. That makes bulls more powerful.
Lower levels have good support levels, as shown in the OI chart.

I am expecting a sideways market to go bullish. It might take some sideways consolidation, but I am overall bullish on the market.

Reason:

1. RSI > 60 shows the market is having very good strength.
   
2. Price > EMA(13,200), which indicates powerful bull market.
   
3. The market has broken the pattern to the upside while making HH and HL.
   
4. PCR = 1.20 shows a heavily bullish nature in the market.
   
5. price > VWAP shows weak market structure.
   

Verdict: Sideways or Bullish

Plan of action:
Sell 48600 PE and 49100 CE (Hedge it with 15/- premium)
Note: Exit the opposite either side it breaks