Banknifty prediction for today 7 Jun 24

7 июн.

As we discussed yesterday, Banknifty traded in a sideways-bullish zone.

If we look at the chart now:
The market has taken support from 200 EMA. The market is trading above EMA, which shows that the market is really bullish right now. There is also a bullish EMA(13, 50) crossover, which indicates that the market is in a bullish phase now. also, we got a golden crossover, which shows the market's strong bullish structure.
Support levels: 48937, 48639, and 47547
resistance levels: 49600, 50503, and 50919

If we look at the OI data:
PCR = 0.62, which has decreased from 0.82, shows a mild bearish sign in the market. There is no such max-pain that means the market can easily achieve 49500, which shows a significant CE writing on higher levels. Next, good CE writing is at 50000, which is also at the psychological level. On the other hand, the lower side, at 48500 and 49000, has good PE writing.
VIX has also decreased significantly, which indicates volatility is being controlled.
I am expecting the market:
Case 1: Sideways in range of 48937 - 49600.
Case 2: Bullish if it breaks 49600 to the upside.


Reason:

1. RSI > 60 shows a bullish structure.
   
2. Price > EMA(13, 50, 200), which indicates a Bullishmarket structure.
   
3. EMA Golden crossover of EMA(50, 200).
   
4. PCR = 0.62 has decreased from 0.82, which is a sign of worry that might lead to a sideways if 200 EMA holds good support.
   
5. Price > VWAP shows a Bullish market structure.
   

Verdict: Sideways in range of 48937 - 49600. bullish if it breaks 49600 to the upside.

Plan of action:
Case 1: Sideways: Sell 48900 PE & 49500 CE (Hedge it with 20/- premium options)
Case 2: Exit 49500 CE if it breaks to the upside.