NIFTY analysis for tomorrow 03 JAN 24

6일 전

As we discussed, the NIFTY has been in sideways accumulation phase, it has broken to upside.

If we look at the chart now:
The market is trading at 50 EMA (1D-tf) and 200 EMA (4H-tf) resistance levels. Also, the market has given good bullish momentum today. Tomorrow might be a small side day. Also, the market is trading near the resistance level, which is going to provide good resistance. Important levels and trendlines have been marked on the chart.
Support levels: 200 EMA, 23950, 50 EMA (23800)
Resistance levels: 24167, Trendline (PINK), 24330

If we look at the OI data:
PCR = 1.2, which shows a good bullish structure in the market. The market has 24200 as max pain. As it is the very beginning of the weekly expiry, OI data is not going to play a very crucial role. Lower sides 24000, 23900, and 23800 have very good PE writing, so bulls are quite strong on lower levels. On higher levels, 24500 has good CE writing, which is going to provide good resistance.
I am expecting
The market is to be sideways unless it breaks the PINK trendline.
Reason:

1. RSI = 77 shows a bullish structure. (Bullish) - [Need some cool off.]
   
2. Price > EMA(13, 50, 200), which indicates a good Bullish structure. (Bullish)
   
3. PCR = 1.2 indicates bullish direction in the market.
   
4. Price > VWAP shows a good bullish structure in the market.
   

 
Verdict: Sideways or Bullish
Plan of action:
Sell 24200 CE and Sell 24200. PE holds it in the range. Exit one leg if it breaks to one side.