Banknifty prediction for tomorrow 19 Dec 23

18 Ara 2023

As we discussed, Banknifty yesterday was sideways while the day was quite volatile. People who Sold 48200 CE and bought 48600 CE would have been in profit. Now, if we see the chart, it took resistance at the line we drew yesterday; now, I am expecting it to touch level 48100 again and then make a double top and fall.

Reasons:

1. 48100 will be providing a nice supply zone.
   
2. Price > EMA(50,200) but < EMA(13) it might take support at 50 and then bounce back up to make the double top.
   
3. OI data shows huge CE writing at 48000, which shows preparation for the bear move this week.
   
4. RSI shows bullish divergence that shows it might go to double top before fall.
   
5. 47600 will be providing a nice support area as price action support.
   
6. The middle support line will be acting as the intermediate support line.
   

Verdict:
Sideways or Bearish

Plan of action:
keep holding yesterday's position, or you can make a new position once it tests the 48100 level again.
Sell 48100 CE + Buy 48500 CE