As we discussed yesterday, Nifty moved sideways. It gets rejected from the 21500. OI shows its preparation for the bearish move, as we can also see on the chart. I am expecting it to touch again, make the double top, and then come down.
Reasons:
Verdict:
Sideways or Bearish
Plan of action:
Sell 21500 CE + Buy 21650 CE
Reasons:
- OI has PCR 0.96, which is bullish. But there is a huge CE writing on 21400, 21450, and 21500, which shows that a bearish move is about to come.
- RSI is showing bullish divergence, while RSI is 50 decreasing. Its a sign of weak bull power.
- 21500 is acting as nice Price action resistance; also, OI shows huge CE writing on 21500.
- price > EMAs, which means bulls still have some power.
- 21250 will be acting as a nice price action support point.
- all-important levels have been marked on the chart.
Verdict:
Sideways or Bearish
Plan of action:
Sell 21500 CE + Buy 21650 CE
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