A reasonable negative candle was formed on the daily chart with gap down opening and with a long upper shadow. Technically, this pattern indicates a decisive downside breakout of a symmetrical triangle pattern with lack of strength to bounce back. The immediate support of 23,260 has been violated on the downside and the market is now placed to slide further lows.
The underlying trend of Nifty continues to be weak. Nifty is on the way down to the next lower support of around 22,800-22,700 levels . Any pullback up to 23,350 could be a sell-on-rise opportunity, said Nagaraj Shetti of HDFC Securities.
In the open interest (OI) data, the highest OI on the call side was observed at 23,300 and 23,200 strike prices, while on the put side, the highest OI was at 23,000 strike price.
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