Markets Slide as Selling Pressure Mounts
Benchmark indices experienced a sharp correction, with the Nifty closing down by 261 points and the Sensex falling by 870 points. All major sectoral indices faced profit booking during the day, with the defence and auto sectors declining the most, each by 2%.
Technical View
From a technical perspective:
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After a positive market opening, selling pressure was consistently observed at higher levels.
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The daily chart has formed a long bearish candle.
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The intraday chart indicates a continuation of the correction, which is largely negative.
Key Levels to Watch
| Scenario | Nifty Level | Sensex Level |
|---|---|---|
Correction Persists | Below 24,850 | Below 81,700 |
Support Zone | 24,550 - 24,500 | 80,800 - 80,500 |
Sentiment Shift | Above 24,850 | Above 81,700 |
Upside Potential | 25,000 → 25,100 | 82,200 → 82,500 |
Strategy Highlights
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Short near 24,850 with a stop loss at 24,950.
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Buy (Contra Bet) around 24,500 with a stop loss at 24,400.
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Major support between 24,600 and 24,500, with additional support from the 20-day SMA.
Bank Nifty Outlook
The Bank Nifty failed to surpass the 56,100 level, which is negative.
Resistance & Support Strategy
| Level Type | Bank Nifty Levels |
|---|---|
Resistance | 55,000 & 55,400 |
Support | 54,400 → 54,100 → 53,800 |
Strategy: Reduce long positions at each resistance level.
Derivatives Insights
Market Recap
Index Change % Nifty 50 -1.05% Nifty Midcap 100 -1.62%
After a positive start, Nifty gradually drifted lower throughout the session and finally settled in the red with a loss of 1.05%. The Nifty Midcap 100 underperformed the Nifty 50, ending with a sharp loss of 1.62%.
Options Market Insights
| Metric | Value |
|---|---|
Highest Call OI | 25,000 Call |
Highest Put OI | 24,500 Put |
Put-Call Ratio (PCR) | 0.491 |
Max Pain | 24,800 |
VWAP Range | 24,620 – 24,865 |
Sentiment | Cautious Undertone |
Higher Call writing compared to Put writing → Cautious Undertone
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