NIFTY prediction for tomorrow 19 JUN 24

18 giu

As we discussed, NIFTY traded in a sideways-bullish zone on the upside with huge volatility in the short range.
If we look at the chart now:
The market is trading indecisive in a bullish zone. That may lead to a short correction in the market. The market is not going to be bearish unless EMA(13, 50) successfully crossovers. Right now, the market is very volatile. Trade it with proper risk management.
Support levels: 23526, 23474(EMA(50)), and 23379
resistance levels: 23622, 23600

If we look at the OI data:
PCR = 1.19, which has decreased from 1.42, shows a bullish sign in the market. 23500 is max-pain. The market does not have much resistance to the upside till 24000. However, as bulls are not able to push the market to the upside, it might lead to a short correction. Also, a significant fall in PCR shows weakness in bulls. There have been lots of calls unwinding, which shows that bears also do not have strength, which might lead the market sideways.
I am expecting the market to touch an upper trendline and then a correction.
Reason:

1. RSI 70, having flat momentum, shows a sideways structure.
   
2. Price > EMA(13, 50, 200), which indicates a bullish market structure.
   
3. PCR = 1.19 has decreased from 1.42 and shows signs of weakness in the bull's strength.
   
4. Price > VWAP shows a Bullish market structure.
   

Verdict: Indecisive


Plan of action:
Case 1: Range Bound: Sell 23600 CE & 23500 PE (Hedge it with 10/- premium options)
Case 2: Exit opposite position on either side it breaks.