As we discussed, BANKNIFTY opened sideways and retested 53000 levels, which started to fall and gave a nice bearish momentum.
If we look at the chart now:
The market has broken the resistance to the downside with a good bearish momentum.
Support levels: 52023, 51830, and 200 EMA
Resistance levels: 50 EMA, 52403, 52689
If we look at the OI data:
PCR = 0.64, which has changed from 1.32, shows bears are making their position and selling high points. So, some correction can be expected here. 53500 is Max-Pain.
I am expecting a correction in the market till 200 EMA.
Reason:
Verdict: Sideways or Bearish
Plan of action:
wait for 15 min candle. Let the market take resistance at 13 EMA or 50 EMA. Once you see the direction bearish.
Sell 52400 CE (Hedge it with 20/- premium)
If we look at the chart now:
The market has broken the resistance to the downside with a good bearish momentum.
Support levels: 52023, 51830, and 200 EMA
Resistance levels: 50 EMA, 52403, 52689
If we look at the OI data:
PCR = 0.64, which has changed from 1.32, shows bears are making their position and selling high points. So, some correction can be expected here. 53500 is Max-Pain.
I am expecting a correction in the market till 200 EMA.
Reason:
- RSI < 40 falling and also having divergence, which might lead the market to some correction.
- EMA(200) < Price < EMA(13, 50), which indicates the market can take some correction till 200 EMA.
- PCR = 0.64, which shows that the market is strongly Bearish.
- Price < VWAP shows a Bearish market structure.
Verdict: Sideways or Bearish
Plan of action:
wait for 15 min candle. Let the market take resistance at 13 EMA or 50 EMA. Once you see the direction bearish.
Sell 52400 CE (Hedge it with 20/- premium)
