NIFTY Prediction for tomorrow 29 May 24

5月28日

As we discussed, Nifty has a sideways or bearish structure; it ended sideways in 1st half, then bearish later 2nd half.

If we look at the chart now:
The market has broken 50 EMA and a good support zone to the downside. Also, an EMA(13, 50) bearish crossover is about to happen, which might lead to a bearish market structure. The market is making an HNS pattern and has broken the neckline to the downside, which might lead to a target of 22600 levels.

If we look at the OI data:
PCR = 0.80, which has fallen from 0.89, shows good CE writing at higher levels. 23000 will be acting as hard resistance at higher levels. Other than that, Nifty has good resistance at 23100, 23200, and 23300.

Looking at the data, Nifty might go bearish in the upcoming session with a target of 22600.

Reasons:

1. RSI < 40 falling from the upside shows a good bearish strength.
   
2. EMA(13) > Price > EMA(50, 200), which indicates an indecisive or rather sideways market.
   
3. The market has formed a lower high that indicates the market is bearish.
   
4. PCR = 0.80 indicates mild bullishness, but this has fallen from 0.89, which shows good CE writing at higher levels.
   
5. Price < VWAP shows that a weak market structure can lead to a bearish market.
   

Verdict: Bearish

Plan of action: 22800 PE (Hedge it with 10/-) if the market continues bearish momentum.

Note: you can target 200 EMA targets.