A long negative candle was formed on the Nifty daily chart on Tuesday, placed near the recent swing low of 4th November around 23,816 levels. Technically, this pattern indicates a lack of strength in the market to sustain the upside bounce.
The short-term trend of the Nifty continues to be weak. A slide below 23,800 levels could open the next downside target of around 23,500 levels (200-day EMA) in the near term. Immediate resistance is at 24,050 levels, said Nagaraj Shetti of HDFC Securities.
Negative chart patterns like lower tops and bottoms are intact on the Nifty daily chart. Having declined from the new lower top of 24,537 levels, the odds of a new lower bottom formation is likely below 23,800 levels in coming sessions, Shetti added.
In the open interest (OI) data, the highest OI on the call side was observed at 24,000 and 24,100 strike prices, while on the put side, the highest OI was at 23,800 strike price followed by 23,900.