Banknifty prediction for tomorrow 07 Mar 24

6 thg 3

As we discussed, the Banknifty breakout gave quite a nice target today. As it was expiry today, the market turned sideways in the afternoon.
If we look at the chart now:
The market is trading at the resistance zone right now. Today, it has been sideways at resistance. After that, some selling came with good volume, which may be because of expiry today. The RSI trendline has also broken down to the downside.

If we look at the OI data:
PCR = 0.9 shows bullish market sentiments. But as it is just the start of the week, this does not contribute much for now.
There can be 2 cases, as marked on the chart.
Case 1: if it takes support at 47850, then it can move till 48600(ATH).
Case 2: Might consolidate in the range 47500-48000.
Reasons:

1. BN is trading at the resistance Zone.
   4H-TF resistance trendline.
   All-time high resistance Zone
   
2. The RSI trendline has broken down to the downside. There might be some correction or consolidation.
   
3. PCR = 0.9 shows bullish sentiments. 48000 is maxPain while 47500 is a good resistance according to the OI data. The above side is not much CE writing that shows the market is going to be HIGHER HIGH in upcoming sessions.
   
4. VWAP = Price shows price is balanced.
   

Verdict:
Sideways or Bullish

Plan of action:
Case1: Sell 47800 PE (Hedge it with 20 rs PE)
Case 2: Iron condor in range 47500-48000.