Banknifty prediction for tomorrow 14 Aug

13 Ağu

As Banknifty is showing a huge sell-off today, the market is in bearish sentiments, followed by the Heisenberg report on the SEBI chairperson.

If we look at the chart now:
The market is trading at the 4H-TF support trendline zone(Marked in Green) and 200 EMA (4H-TF). price is trading below the ema(13, 50, 200) shows market is in bearish phase. The market might take support here, or if it breaks down to the downside, it's going to take support at 49000 next, as can also be confirmed with OI data.
Support levels: 49683, 200 EMA (4H-TF)
Resistance levels: 50 EMA, 200 EMA

If we look at the OI data:
PCR = 0.55 shows bearish market behavior. There has been a huge PE sell-off today, which shows bulls are not trusting the market anymore and come out. There is too much CE writing at higher levels than PE writing at lower levels, which shows a high chance of a bearish market in the upcoming session.

I am expecting the market to follow 3 cases which are marked on the chart.
Case 1: if it opens the gap down, it might touch the trendline and take support 49000.
Case 2: if the market opens a gap-up, it will take resistance at 50 EMA, and then it might continue the bearish momentum.
Case 3: If it opens sideways, wait for the price action at the green trendline zone.
Reason:

1. RSI < 40, showing the market is going to be in a bearish structure.
   
2. Price trading at 200 EMA (4H-TF), which might provide good support.
   
3. PCR = 0.55 shows that the market is huge Bearish.
   
4. Price < VWAP shows a Bearish market structure.
   

Verdict: Bearish or sideways

Plan of action:
See the price action at the green trendline zone. There have been marked three cases.