An analysis of Nifty put options reveals a concentration of Open Interest (OI) at the 22,700 level, implying potential support at this level. On the call side, significant OI concentrations are observed at the 23,200 and 23,500 levels.
Technically, the index closed below the level of 22,500, which has been acting as a minor support for the last couple of days. While this is a negative development, its not something that opens a big downside, observed an expert.
Nifty on Wednesday ended flat with a gain of just one point and formed a small negative candle with a lower shadow on the daily chart ahead of the RBI policy outcome tomorrow.