As we have discussed, NIFTY has been in the uptrending channel. It has been broken to the downside with huge volume power.
If we look at the chart now:
The market has broken the channel to the downside and is continuing its momentum to the downside.
Whereas 21900 is a good support zone that might provide support. If it's broken, the next support point will be 21500. as marked in the chart.
If we look at the OI data:
PCR = 0.50 shows huge bearishness in the market. 22000 is a max pain point for now. On lower levels, there are not many support levels. On higher levels, there is huge CE writing at 22000, 22100, 22200 ... etc.
I am expecting the market to fall more to 21500 levels this week.
Reasons:
Verdict: Bearish
Plan of Action: Sell 21900 CE (Hedge it with 15 premium CE).
If we look at the chart now:
The market has broken the channel to the downside and is continuing its momentum to the downside.
Whereas 21900 is a good support zone that might provide support. If it's broken, the next support point will be 21500. as marked in the chart.
If we look at the OI data:
PCR = 0.50 shows huge bearishness in the market. 22000 is a max pain point for now. On lower levels, there are not many support levels. On higher levels, there is huge CE writing at 22000, 22100, 22200 ... etc.
I am expecting the market to fall more to 21500 levels this week.
Reasons:
- RSI < 40 shows weakness in bulls.
- price < EMAs shows bearish strengthen market.
- PCR = 0.50 shows a bearish market.
- price < VWAP indicates bearish sentiment in the market.
Verdict: Bearish
Plan of Action: Sell 21900 CE (Hedge it with 15 premium CE).
