Trend correction or reversal ? : Market Analysis - Feb 22 2021

Trend correction or reversal ?

1. 4 red candle in a row and a weekly candle seen red
2. Momentum divergences seen last week played out well dragging nifty to their target levels now
3. Momentum on daily broken bullish zones but weekly and monthly momentum still intact in bullish zone
4. Price took support on  20 day moving average line
5. Took support of 14977 level candlestick price support level after earlier breaking previous support of 15250
6. Price took support on previous swing pitch fork middle channel
7. ADX DM+ trend continue to be in bullish while heading towards a cross over with strength seen weakened.
8. A positive reverse divergence on momentum may be forming but with a slight dilution after  breaking bullish equilibrium, but a bounce from current levels cannot be ruled out if that works out targeting previous high 400 points up.
9. Next support levels would be 14750 levels based on previous candles where it could bounce with change in polarity
10. This is also the FIB 38% retracement level from last swing which is confluence of support indicating market could dip some more before reversing..
11. As per FIB extension if previous high is conquered back market could move till 160000 levels.
12. 15 min charts of previous one week showed a clear downtrend with selling seen every time it hit simple moving average
13. line and if price stays above 15250 levels there could be bullishness back again while and breaking of 14750 level are not correction any longer instead would be a reversal
14. Open interest data showing nifty as long unwinding which mean price is decreasing at the same time open interest is falling
15. Feb expiry options open interest is bearish with call writing at 15200 to 16000 levels and major support
16. levels seen only at 14500/14000 levels while current 15000 level has good OI support
17. for now again indicating market could hover around it some more that need to be watched if it gets broken on Monday. Put call ratio fallen to bearish zones of 0.87 now.
18. DII sold 10 time more than FII the little bought last day and same was happening entire last week
19. VIX rose more than 3% in a single day after having cooled off previous few days and volatility continues to be there in market as long as it is above 20 levels
20. Bank nifty has active positive reverse divergence on momentum seen with bullish momentum still in bullish zones and there could be a bounce up with a change in polarity move if it plays out.
21. it has currently taken FIB 23% support  and below supports levels could be moving average support at 35000 levels and fib 38% at 34650 levels.
22. ADX for bank nifty  has taken a bend after the recent trend dip but still directional movement still positive.
23. RSI momentum is intact in weekly and monthly timeframes
24. Bank nifty is showing clear bearishness on open interest with price falling and oi increasing.
25. Options OI is also bearish with call writing heavy on 37000 levels and supports writing seen at 35500-35000 levels
26. Sector wise private banks were performing worse last day while all other sector were neither too bullish or bearish..