Verdict: Bullish or Sideways
Plan of action:
Above 24800 Bullish go CE buying.
In the range 24522 – 24800 Sideways. Go with an Iron condor.
As we discussed yesterday, the market opened at resistance and took support at 50 EMA in the sideways zone.
If we look at the chart now:
The market is in a sideways zone and expected to have a bullish bias. If liquidy grab came, it might also touch 200 EMA. But the market is not Bearish right now. It is a sideways area in the region, and it is bullish in the green region.
Support levels: 50 EMA, 24522, 24339, 200 EMA
Resistance levels: 24800, 25140
If we look at the OI data:
PCR = 0.8, which has decreased from 1, shows call addition at the higher level. The market has good PE writing at 24500 and 24400. Other levels, 24700 and 24800, have a moderate amount of writing, showing it can be volatile in that zone. If 24800 breaks to the upside, the next good resistance level is 25000, where good CE writing has been done.
I am expecting
Case 1: Sideways in the range 24521 – 24800.
Case 2: if the market breaks 24800 to the upside, the direct target will be 25000.
Reason:
Verdict: Bullish or Sideways
Plan of action:
Above 24800 Bullish go CE buying.
In the range 24522 – 24800 Sideways. Go with an Iron condor.
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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