NIFTY prediction for tomorrow 21 Feb 24

20 Şub

As we have discussed, the nifty Bullish structure today has successfully broken and retraced to the upside.
Now, if we look at the chart data:
The market has given a successful breakout to the upside. The market is trading at ATH. The market has already retraced the breakout and has proven the bull's strength. Now, the market is ready to go up.
If we look at the OI data:
PCR = 1.22 shows that the market is bullish right now. Also, we do not have much resistance to the upside. If the rally starts, it will directly go to the 1st Fib level (1.414) at 22416. 22500 is the next good CE writing point, which is also supported by the Fib 1.414 level.

I expect the market to go up to the 22416 level for now.
Reasons:

1. Price> EMAs shows sthe market is having bullish sentiments.
   
2. RSI > 60 shows the market is in a bullish region.
   
3. Price> VWAP shows the market is bullish and has a balanced Price with volume.
   
4. OI data PCR = 1.22 shows the market is in bull's control right now. Also, 22500 will be providing the next resistance in the market.
   

Verdict:
Bullish

Plan of action:
Sell 22200 PE (hedge it with 20 rs premium)