BANKNIFTY Prediction 12 Jan 24

11 sty

As we discussed, Banknifty has been moving in the range. Yesterday, it tried to break it to the downside, but the bulls came into power and again pushed back into the channel.
Today, it opened a gap up and took resistance to the trendline, mostly having a sideways day. Again tried to break it to the downside, but the Bulls again pulled it back.
Now, it's in the support zone. If it again breaks to the downside, it might give a nice momentum to the downside with a target of 47000. but if it breaks the trendline to the upside, it will be rejected from 200 EMA and might result in a sideways day again.
If we see OI data, PCR = 0.80 weekly, which is neutral. But the monthly expiry PCR is 0.90, which leans towards the bulls side. Now, If it breaks the downside, a fall can be expected of 400 points. Otherwise, It might result in a sideways day in a range of 47450-48000.

Reasons:

1. Price < EMAs shows a bearishness in the market. (Bearish)
   
2. RSI = 50, which is 40-60, mostly ends up a sideways day. If it breaks 60, it is upside bullish, or if it breaks 40, it is downside bearish; otherwise, sideways, 40-60 can be expected.
   
3. OI shows PCR = 0.8 which is neutral.
   
4. BN is making a descending triangle pattern that shows demand for an asset is weakening, so there are higher chances of breaking to the downside.
   
5. Price < VWAP, which shows the bearishness. (Bearish)
   

Verdict:
Bearish if it breaks to downside AND sideways in the RANGE.

Plan of action:
Wait for 15 min to see Price action at opening; then place trades accordingly.