Banknifty prediction for tomorrow 19 Feb 24

2月16日

As we have been discussing, Banknifty has a bullish nature for a couple of analyses. Now it's reaching near the resistance zone @46970.
Now, if we look at the chart:
The market has broken to the upside; also, the market is making a double bottom if we look at the 4H frame. 46300 was good resistance, which broke to the upside. Now, I am expecting it to provide good support.

If we look at the OI data:
Pcr = 1.10, which shows the market is bullish. However, the above side 46970 will provide good resistance, which is also confirmed by OI heavy CE writing at the 47000 level. MaxPain, for now, is 46500. Once it's broken to the upside, the path to 46970 will be clear.

I expect the market to be volatile in this zone, as per the historical data. Right now, at a double bottom neckline. I am expecting volatility in 46300-46970.
Reasons:

1. The last two times, the market fell sharply from this level.
   
2. Price > EMA indicates bullishness in the market.
   
3. RSI is showing bearish divergence. Some consolidation is required at this point.
   
4. OI data Pcr = 1.10 shows bullishness. 46500 is MaxPain, and 47000 shows heavy CE writing.
   
5. VWAP ≥ price, which indicates bullishness in upcoming sessions.
   

Verdict:
Bullish till 46970 level.

Plan of action:
Be aware of opening high; if the market gap-up, there is a high chance of range bound in 46500-46970. Go with an Iron Condor in the range 46500-46970.