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 the resistance trendline (Why this resistance looks like my last bank nifty analysis). The market is taking support at 22430. the market has touched this trendline multiple times, which makes it easier to break to the upside.
If we look at the OI data:
PCR = 1.11 shows a bullish market structure. If we look at the CE and PE activity, there is a huge amount of CE and PE writing on both sides. That indicates the market is going to be sideways. 22500 is Max-Pain.
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 is sideways in orange region.
Case 2: Market breaks to upside till 22650. (Fib 1.414)
Reasons:
Verdict: Sideways or Bullish
Plan of action:
Case 1: Short straddle 22500 (Hedge with 20 premium)
Case 2: Sell 22500 PE (Hedge with 20 premium PE)
If we look at the chart data now:
The market is taking resistance at the resistance trendline (Why this resistance looks like my last bank nifty analysis). The market is taking support at 22430. the market has touched this trendline multiple times, which makes it easier to break to the upside.
If we look at the OI data:
PCR = 1.11 shows a bullish market structure. If we look at the CE and PE activity, there is a huge amount of CE and PE writing on both sides. That indicates the market is going to be sideways. 22500 is Max-Pain.
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 is sideways in orange region.
Case 2: Market breaks to upside till 22650. (Fib 1.414)
Reasons:
- Price > EMA indicates the bullish nature of the market. but price >> ema(200) shows market need some reversion.
- Price taking resistance at resistance trendline. (Sideways)
- RSI is 40-60, showing a sideways market structure. If it breaks 60 to the upside. The market can give targets till 22650, which is also the Fib 1.414 level.
- PCR = 1.11 (1.34 to 1.11) shows Bears are actively adding positions, which might force the market to be sideways. (Sideways)
Verdict: Sideways or Bullish
Plan of action:
Case 1: Short straddle 22500 (Hedge with 20 premium)
Case 2: Sell 22500 PE (Hedge with 20 premium PE)
Trade closed: target reached:
exit your bearish positions
