As we discussed Banknifty bearishness yesterday, it opened a Gap-up and then took resistance at 200 EMA, then it fell with quite a nice volume. Also, it did break the pattern to the downside. Also, 47400 was acting as a very nice support but has been broken with good volume and selling pressure. The volume of those candles was very demanding. If we look at the OI data, it also suggests that PCR = 0.48, which is super bearish. And this much fall in OI has not been seen in the past 2-3 months. I am expecting a fall till 47000 as the first target and 46600 as 2nd target is achievable. All important levels have been marked on the chart.
I am expecting a bearishness in tomorrow’s session.
Reason:

1. The chart has broken to the downside, which shows a super bearish structure. (Bearish)
2. OI data shows PCR = 0.48, which is assumed to be the bearish market condition. Today, a large quantity of PE is being exited, which can be seen in the daily OI change. (Bearish)
3. RSI has dropped to the bearish zone (<40), which shows very weak bulls in the market. (Bearish)
4. Price < EMAs that shows price is weaker; Supply > Demand (Bearish).
5. according to GIFTNIFTY, the market might open a Gap-up and then fall from the price action level marked in the chart.
6. Price < VWAP shows bearishness, which might lead to a good fall. (Bearishness)
7. It is making HNS, which is at the top of the Bull trend that might lead to a very bearish structure. (Bearish)

Note: PA = Price Action