NIFTY Prediction for tomorrow 9 Jan 24

8 thg 1

As we discussed nifty yesterday, It could not break to the upside, so entry didn't activate, but it broke to the downside pattern today. Also, if we look into the market, OI data indicates PCR = 0.7, which is bearish. Also, because the market is in the support line, it is still inside the channel. If it breaks the range to the downside, sellers will get activated, and heavy selling might be witnessed.
I am expecting the market to move further down if it breaks to the downside. as Banknifty is already super Bearish. Nifty might follow up on the same trend in tomorrow's market.

Reasons:

1. Price < EMA(13,50), but it's close to 200 EMA, which might provide a nice support.
   
2. The trend has broken to the downside. Banknifty is bearish. NIFTY might also follow the same trend to the downside.
   
3. RSI has dropped to the bearish zone (<40), which shows very weak bulls in the market.
   
4. OI data shows PCR = 07, which is assumed to be the bearish market condition. Today, CE was added in large quantities, which can be seen in the daily OI change. (Bearish)
   
5. 21500 is MAX PAIN. If it breaks to the downside, a good fall can be seen in nifty till the level of 21120.
   

Verdict:
Bearish

Plan of action:
Bearish if it Breaks the 21500 level to the downside; otherwise, wait for PA at 21500.

Note: PA = Price Action