Verdict:
Neutral (Mild Bearish)
Plan of Action:
Observe PA at 200 EMA. If the price is below the outside rectangle, go Bearish.
As we discussed, Banknifty touched Target 1 and then fell from there.
Now, if we look at the charts,
The market is making a rectangular pattern in an uptrend; now, it has broken to the downside. Also, we have 200 EMA support here. Banknifty is sitting in a make-and-break situation. It might take support, but if we look at RSI, bulls do not have strength. Also, the last 5 candles were intensely selling volume candles, which indicates the market will go bearish in upcoming sessions.
OI data:
PCR = 0.70 indicates the neutral behavior of the market. 46000 is the MaxPain. If it breaks to the downside, the next level of support is 45400. Also, on the upside, 46500 is a strong level of resistance.
FII & DII data:
FII is mildly bullish, whereas PRO seems to be mildly bearish, which gives neutral market behavior.
I am expecting the market to go bearish in upcoming sessions:
Reasons:
Verdict:
Neutral (Mild Bearish)
Plan of Action:
Observe PA at 200 EMA. If the price is below the outside rectangle, go Bearish.
Disclaimer:
The information provided in this blog post is for informational purposes only. It is not intended as financial, investment, or trading advice. The author is not a licensed financial advisor or professional.
Trading and investing in financial markets carry inherent risks, and past performance is not indicative of future results. Readers should conduct their research, consider their risk tolerance, and consult with a qualified financial advisor before making any trading or investment decisions.
The author is not responsible for any financial losses or gains that may result from actions taken based on the information presented in this blog post. All trading and investment decisions are made at the reader’s own discretion and risk.
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