NIFYT prediction for today 7 Jun 24

As we discussed yesterday, Nifty traded in a sideways-bullish zone.

If we look at the chart now:
The market is trading in a Bullish sideways market zone. Price has taken support at 200 EMA, and it has also formed a double bottom, which shows the market is in consolidation mode. If it breaks the neckline, you can make a bullish entry after a retracement.
Support levels: 22640, 22267, 21850
resistance levels: 22898, 23151, 23307

If we look at the OI data:
PCR = 0.82, which has increased from 0.63, shows a bullish sign in the market. 22800 is max-pain. On higher levels, there is much more PE writing compared to lower-side PE writing.
VIX has also decreased significantly, which indicates volatility is being controlled.
I am expecting the market:
Case 1: Sideways in range of 22640-22898
Case 2: On either side, it breaks to the upside. We can target the 23000 level.


Reason:

1. RSI > 60 shows a bullish structure.
   
2. Price > EMA(13, 50, 200), which indicates a Bullishmarket structure.
   
3. PCR = 0.82 has risen from 0.63 and shows signs of bullishness.
   
4. Price > VWAP shows a Bullish market structure.
   

Verdict: Sideways in range of 22640-22898. bullish if it breaks 22898 to the upside.

Plan of action:
Case 1: Sideways: Sell 22650 PE & 22900 CE (Hedge it with 20/- premium options)
Case 2: Exit 22900 CE if the market breaks to the upside.