As we discussed, Nifty had a sideways structure; it was sideways the whole day.
If we look at the chart now: The market is trading in the range while taking good resistance at 200-EMA. The market is very volatile as VIX is 24.60. the market is trading in the range 22465 - 22639. If we look at the last two candles, it is a huge volume from the support zone as well as selling from the resistance zone.
If we look at the OI data: PCR = 0.76, which has fallen from 0.53, shows a market bullish structure. 22500 is going to be MaxPain. 23000 is very Hard resistance with heavy CE writing. I am expecting: Case 1 : Sideways in the range 22465 - 22639. Case 2 : If the market breaks 22465 to the downside or if the market breaks the upside, it will be bullish.
Reasons:
RSI < 50 shows a weak bull strength.
Price < EMA(13, 50, 200), which indicates a bearish market.
The market has formed a lower high lower low structure in 15-min TH that indicates the market is bearish unless the market tends to form a Higher-High.
PCR = 0.76 indicates neutral market behavior.
Price < VWAP shows that a weak market structure can lead to a bearish market.
Verdict: Sideways in range also can break to either side.
Plan of action: Case 1: Sideways: Sell 22450 PE & 22650 CE (Hedge it with 40/-) Case 2: Exit the loss-making leg once it breaks the channel.