Banknifty prediction for today 5 Jun 24

已更新

As we discussed, Banknifty, because of the event(election result) based trading, we are not going to trade. The fog is now clear, and we have which government is going to be there. Now, the market will be stable in 1 day or two.

If we look at the chart now:
The market had a massive fall yesterday because the election result was not as favorable as expected by the exit poll. Now, the market has reached a temporary support level of 46110 and a minor resistance level of 47837. The market is going to be sideways in the range of 46110-47837. The market might have good momentum on either side if it breaks.
Support levels:46110
resistance levels: 200 EMA, 47837, 49534

If we look at the OI data:
PCR = 0.47, which shows a bearish structure. 47000 is the max pain. Maximum positions have been added at 46500 and 46000, which is going to provide good support. On the upper side, 47000 and 47500 have good CE writing.

I am expecting the market to be:
Case 1: Sideways in range of 46110-47837.
Case 2: On either side, it breaks to either side.
The market is going to have high volatility because the VIX is still 26.74(Very High).

Reason:

RSI is 40-60 shows a sideways structure.
Price < EMA(13, 50, 200), which indicates a bearish market structure.
PCR = 0.47 shows a market bearish sign.
Price < VWAP shows that a bearish market structure.

Verdict: Sideways in the range of 46110-47837 and Volatile on either side it breaks.

Plan of action:
Case 1: Sideways: Sell 46100 PE & 47800 CE (Hedge it with 20/- premium options)
Case 2: Exit the opposite position on either side. It breaks.

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