As we discussed Banknifty, Banknifty gave a nice momentum yesterday and continues to go bearish today. But as we see the chart structure, it has been preparing for the rising wedge pattern. And right now, it is on the verge of breaking down to the downside. But it can also support 200 EMA and support zones. Here right now, two possible decisions can totally depend on how it reacts to the support zone. Looking at the pressure, it might break to the downside.
Reasons:
Verdict:
Bearish unless you take support at zone.
Plan of action:
wait for the market to act to this level.
Reasons:
- Price < EMAs that means bears are in control.
- 200 EMA might provide a good support. Also, it coincides with the Trend Support Zone, which might provide the support.
- The RSI value is very low, which shows that bulls are weak at this point. But at the same time, the market is oversold.
- if we see the OI data PCR = 0.71 which is bearish side. the market has more chances to go down.
- it has given EMA(13,50) crossover that means market is having bearish tendency.
Verdict:
Bearish unless you take support at zone.
Plan of action:
wait for the market to act to this level.
