As we discussed yesterday, Nifty spent on an up-trending channel and ended sideways.
If we look at the chart now:
The market is in the channel right now. If it breaks down to the downside, it will give a nice bearish momentum.
Support levels: 23303, 23233, and 23152
resistance levels: 23439, 23481
I am expecting the market:
Case 1: Sideways in channel.
Case 2: Bearish if it breaks the channel to the downside.
Reason:
Verdict: Sideways in channel. Bearish if it breaks the channel to the downside.
Plan of action:
Case 1: Sideways: Sell 23350 PE & 23400 CE (Hedge it with 20/- premium options)
Case 2: Exit 23350 PE if it breaks to the downside.
If we look at the chart now:
The market is in the channel right now. If it breaks down to the downside, it will give a nice bearish momentum.
Support levels: 23303, 23233, and 23152
resistance levels: 23439, 23481
I am expecting the market:
Case 1: Sideways in channel.
Case 2: Bearish if it breaks the channel to the downside.
Reason:
- RSI 46-60 shows a sideways structure.
- Price ~ EMA(13) but greater than EMA(200), which indicates the market can correct itself till 200 EMA.
- EMA Bearish crossover of EMA(13, 50).
- PCR = 1.17 which shows a bullish sign in the market.
- Price ~ VWAP shows an indecisive market structure.
Verdict: Sideways in channel. Bearish if it breaks the channel to the downside.
Plan of action:
Case 1: Sideways: Sell 23350 PE & 23400 CE (Hedge it with 20/- premium options)
Case 2: Exit 23350 PE if it breaks to the downside.
