Banknifty prediction for tomorrow 8 July 24

7 Tem

As we discussed, BANKNIFTY opened a gap-down and gave a nice bearish momentum to the downside.
If we look at the chart now:
The market is trading at the support trendline and also took a pullback to the upside in the last hour. The market is also taking resistance at 50-EMA. It might give either side momentum. There can be 2 cases as it's trading at the terminal point.
Case 1: If it opens up, it can continue bullish momentum.
Case 2: if it opens a gap-down to support the trendline, it might continue bearish momentum till 200-EMA.
Support levels: 52385, 52081, and 200 EMA
Resistance levels: 52827, 53500

If we look at the OI data:
PCR = 0.71, which shows a neutral behavior in the market. The market can be seen as very volatile between 52500 and 53000. There is good PE writing at 52500 and 52000, which is going to provide good support. However, 53000, 53100, and 53200 have very good CE writing, which is going to provide a good resistance to the upside.
I am expecting the market to be
Case 1: Take support here and again retest the upper resistance trendline.
Case 2: If it breaks to the downside, it can give a bearish target till 200 EMA.
Reason:

1. RSI < 40-60; shows market sideways structure.
   
2. EMA(200) < Price < EMA(13,50) shows bearishness. If it breaks, the support trendline can give targets till 200-EMA.
   
3. PCR = 0.71 shows that the market is neutral.
   
4. Price < VWAP shows a bearish market structure.
   

Verdict: Neutral

Plan of action:
The morning 15-minute direction will determine the market direction.
Once the direction is confirmed, make the position according to case 1 or case 2 as provided.

8 Tem

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