Banknifty Prediction for tomorrow 8th Jan 24

Last, we discussed Bank Nifty on the 3rd of January. It took very nice support from there and gave a very nice target, as expected. For tomorrow, as we can see from the charts, it has prepared an inverted HNS pattern. If that breaks to the upside, it's going to give us a very good target of 49000.
But on the other hand, it might also take resistance from here and again test the 200 EMA to the downside. But by looking at the trend strength, there are more chances to break to the upside.
If it breaks to the upside, we can go bullish; else, play neutral unless some sign of bearishness is there.

Key Points:

1. It's making an Inverted HNS pattern. If it breaks to the upside, it will give a nice target of 49000. (Bullish)
   
2. Price > EMA(13,50,200) which shows price have strength. The bulls are in control. (Bullish)
   
3. EMA(13,50) crossover shows bullishness in the Market.
   
4. RSI ~ 50 increasing continuously; if it breaks 60 to the upside, it will enter into the bullish zone, and good momentum can be expected.
   
5. OI data PCR = 0.7 raises some concerns about the bullish momentum; wait for it to go more than 0.85. Then you can enter the bull side.
   
6. upper trendline can provide rejection as it activated sellers in the last 30 min. It may provide resistance.
   

Verdict:
If it Breaks the HNS neckline (Trendline) to the upside, go Bullish.

Plan of Action:
If break successful Sell 48200 PE + Buy 46900 PE (For protection + Hedge in worst case) + Buy 48100 CE (To capture Bull momentum)