Stock Market Highlights: Nifty’s Short-Term Trend Remains Weak, Key Support at 23,500
Nifty’s short-term trend shows continued weakness, with potential for a decline below 23,800, which could push the index toward the next support level around 23,500, corresponding with the 200-day EMA. Immediate resistance stands at 24,050, as noted by Nagaraj Shetti of HDFC Securities.
A large negative candle formed on Tuesday’s daily chart, positioned close to the recent swing low from November 4 around the 23,816 level, signaling limited strength for a sustained upward move. Technically, the Nifty has been forming negative chart patterns, with lower tops and bottoms on the daily chart. This trend suggests that further declines may lead to a new lower bottom below 23,800 in upcoming sessions.
In terms of open interest (OI) data, the highest OI on the call side is at the 24,000 and 24,100 strike prices, while on the put side, the highest OI is at the 23,800 strike price, followed by 23,900.
Trading Strategy for Tomorrow:
Traders should be cautious of further downside risk. A break below 23,800 could lead to a target near the 23,500 support level. For any upward movement, 24,050 remains a key resistance level to watch.
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