Market Update
Harsh Patel
Founder
Nifty breaks below 26000, GiftNifty trades -76(-0.29%) lower to 25965, indicating opening below 25900.
Support levels: 25850-25660 Resistance levels: 26000
The broader market witnessed consistent selling on Monday to close on the crucial support levels or say 'the market indices close on edge of a steep fall.'
Nifty Smallcap lost most with fall of over -2.67%, while in Mid caps, MIDCPNIFTY lost -1.95%, to close near valley low a breach of same will confirm 'Double Top Breakdown', the Midcap 100 index has already formed Double Top, suggesting correction in broader market to get steeper.
A breach trendline support of 25900 & recent swing low of 25844, may intensify selling pressure to 25660 levels. Banknifty is also on edge of 'Rising Channel Breakdown" which may trigger selling upto 58500 levels.
Interest rate hike by BOJ in coming week remains a key risk factor, which may result into increasing selling pressure form FII/FPI as carry trade unwinds and equity markets sees flight of capital, which is also evident with rupee sliding, USDINR may cross 91 mark in coming days.
OI data suggests aggressive call writing activity with OI addition of 15+ Cr among 26300-25900 calls with PCR falling to 0.44 from 1.2,
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