NIFTY gave a really big bullish moment today. It's still an effect, and the market boomed 700+ points.
If we look at the chart now: The market gave really big momentum to the upside. The market is trading above EMA, which shows that the market is really bullish right now. There is also a bullish EMA(13, 50) crossover, which indicates that the market is in a bullish phase now. Support levels: 22246, 21850, and 21293 resistance levels: 22640, 22832, 23151
If we look at the OI data: PCR = 0.61, which has increased from 0.53, shows a bullish sign in the market. There is no such max-pain Market that is clearly bullish. There is only good CE writing at 23000, which is going to provide a huge resistance. VIX has also decreased significantly, which indicates volatility is being controlled. I am expecting the market: Case 1: Sideways in range of 22253-22640 Case 2: On either side, it breaks to either side's trade accordingly.
Reason:
RSI > 60 shows a bullish structure.
Price > EMA(13, 50, 200), which indicates a Bullishmarket structure.
PCR = 0.63 has risen from 0.53 and shows signs of bullishness.
Price > VWAP shows a Bullish market structure.
Verdict: Sideways in range of 22253-22640. and Volatile on either side, it breaks.
Plan of action: Case 1: Sideways: Sell 22250 PE & 22650 CE (Hedge it with 20/- premium options) Case 2: Exit the opposite position on either side. It breaks.