BANKNIFTY prediction for tomorrow 4th Mar 24

3 Mac

As we have discussed, Banknifty's bullish behavior in our last session gave a really nice momentum with 2.4%.
If we look at the chart:
The Banknifty has broken above the trendline, which indicates that the market is currently showing extremely excellent bullish momentum. After this breakout, the market can continue to the level of 48600. The market has been in the consolidation phase for the past 3 months. As it has given a breakout now, I am expecting at least of48600(ATH) to touch again.

If we look at the OI data:
PCR = 1.44 shows huge bullishness in the market. 47000 & 46500 is having huge PE writing at lower levels. Higher levels have CE writing at 47500 & 48000, which is significantly less compared to bulls.

If we look at the FII & DII data, FII is medium bearish because of the resistance zone at 47250, whereas clients are Strongly bullish because of the breakout.

I am expecting the market to go Higher High(HH) till the level of 48500.

Reasons:

1. Price > EMAs(13,50,200) shows markets is having bullish sentiment. (Bullish)
   
2. RSI > 60 shows the market is in control of bulls right now. (Bullish)
   
3. PCR = 1.44 shows good strength of bulls at lower levels.
   
4. Price > VWAP indicates the market has a bullish nature and tends to move higher in the upcoming session.
   
5. 47500 seems to be maxPain. If it breaks to the upside, it would be easier for bulls to drag the market to 48500 easily.
   
6. RSI is reaching 77 which is working as resistance previously. (sideways)
   

Verdict:
Bullish

Plan of action:
Case 1: Sell 47500 PE (Hedge it with 20 rs PE)
Case 2: wait for the market to take support to get bullish.