Banknifty prediction for today 03 JULY

3 Tem

As we discussed, BANKNIFTY opened in the channel resistance zone. And the market started falling till 52000.
If we look at the chart now:
the market is trading in the downside channel in a flag pattern. It might complete the Flag and Pole pattern. If the market takes support from 52000, a good bullish momentum can be seen to the upside.
The market is getting ready for the upside.
Support levels: 52061, 51809, and 200 EMA and 51292
Resistance levels: 50 EMA, 52609, 52850, 53000

If we look at the OI data:
PCR = 0.71, which has changed from 0.87, shows that bears are increasing their position while bulls wind off some of their positions. The market can move in either direction, as per the OI data. 52000 is a good support point, whereas 52500 and 53000 are good resistance points as having good CE writing.

The morning 15-minute direction will determine the market direction.
Reason:

1. RSI ~ 40 indicates a bearish structure in the market; if breaks to the downside, it can give a good bearish momentum.
   
2. EMA(200) < Price < EMA(13,50) shows bearishness, and the market can retest the 200 EMA.
   
3. PCR = 0.70 shows that the market is mildly bearish.
   
4. Price < VWAP shows a bearish market structure.
   

Verdict: Sideways or Bullish

Plan of action:
The morning 15-minute direction will determine the market direction.
Sell 52000 CE and Sell 52000 PE (Hedge it with 20/- premium);
once the direction is confirmed, exit in the opposite position.