BANKNIFTY prediction for tomorrow 5th MAR 24

4 de mar.

As we discussed BANKNIFTY yesterday, Banknifty resulted sideways. Bulls guarded the support level tightly.
If we look at the chart data now:
The market has been taking support at the 47300 level. We were expecting some consolidation in the market today, which happened today. Now we have to wait for it to break the range (47200-47500) to the upside.

If we look at the OI data:
Pcr = 1.22 (Bullish), which has fallen from 1.44 because of the market's sideways momentum.
47500 is MAXPAIN. Once it's broken to the upside, we can say the market is good to go till 48000. there is not much CE writing on higher levels.

I am expecting the market to consolidate for 1 or 2 days and then a good bullish move till the 48600 levels ass target.

Reasons:

1. Price > EMAs(13,50,200) shows markets is having bullish sentiment. (Bullish)
   
2. RSI > 60 having bearish divergence. The market needs some more consolidation to correct the value of RSI.
   
3. PCR = 1.22 shows good strength of bulls; there is not much CE writing at higher levels.
   
4. RSI is reaching 77, which was 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.