BANKNIFTY prediction for tomorrow 18 JAN 2024

1月17日

As we have been discussing BankNifty in the last few days, it's going to be bearish. Today, it gave a massive bearish momentum with 2000 points to the downside, which is registered as the biggest fall of BN after Corona.
If we look at the chart data now, it was in the range of 47000 se 48250, which has been broken to the downside successfully.
Now, the next levels of support are 45693 and 44938, which I45693 is achievable easily if it gains momentum. Also, the BN target of range breakdown is still not completed (target 45680).
If we look into OI data PCR = 0.65 (weekly), 1.1 (next expiry). Looking at the levels, 46000 has huge PE writing. If it breaks to the downside, there is not much obstacle. We can easily achieve the target marked on the charts.
I expect the market to fall tomorrow. It will provide a very nice target if you are able to short the market at a high point after a retracement.
Reasons:

1. Price < EMAs, which indicates the weakness of bulls or bearishness.
   
2. RSI < 40, oversold zone shows bulls are weak at this point. So some retracement and then again fall is expected.
   
3. Price < VWAP that shows bearishness in the market.
   
4. OI data shows PCR = 0.65 which is bearish. 46000 still has nice PE writing left, but once it breaks, it will fall smoothly. (Bearish)
   
5. 46680 and 45000 are potential support zones for now if they behave nicely in Price Action.
   
6. EMA(50,200) bearish death crossover, which indicates a trend reversal. (Bearish)
   

Verdict:
Bearish if breaks 46000 will provide a nice target.

Plan of Action:
Sell 46000 CE + BUY ~25rs CE (for hedge protection) after a retracement.