Banknifty analysis for tomorrow 14 Dec || Bullish

שלשום

As we discussed yesterday, the market has shown a really nice V-shape recovery, which shows the market has a bullish nature.

If we look at the chart now:
The market broke to the downside and then gave a V-shaped recovery. Also, It broke the flag and pole patterns to the upside.
Support levels: 53170, 200 EMA (15H-TF), 52906
Resistance levels: 53607, 53821, 54291

If we look at the OI data:
PCR = 0.9 shows bullish market behavior. There has been good PE writing at 53500, which is going to provide a good support level. Also, 53500 has good CE writing, which might hold the level for a bit. The next good resistance is 54000.

I am expecting the market to be bullish in upcoming sessions.
Reason:

1. The market has broken the upside in the channel-making flag and pole structure.
   
2. PCR = 0.9 shows that the Market is Bullish.
   
3. RSI > 60 shows a Bullish structure.
   
4. Price > VWAP shows the market is bearish right now.
   
5. Price is trading in the mother bar candle zone, which is going to be sideways. Once it's broken, it can give nice bullish momentum.
   

Verdict: Bullish and sideways.

Plan of action:
Wait for the market to retrace and then go bullish.