Negative chart patterns like lower highs and lows are intact and the index is currently on the way down to form a new lower low. “We observe a broader triangle-type pattern on the daily chart and the market is currently placed at the edge of breaking below the lower support of 19,250 levels," said Nagaraj Shetti of HDFC Securities.
The negative chart pattern like lower tops and bottoms is active on the daily chart and the market has not shown any decisive upside bounce so far.India VIX was up by 0.99% from 12.12 to 12.24 levels. Volatility rose above 12.5 during the day and has been rising from the last few sessions
Technically, this pattern indicates a side-by-side bull candle-type pattern, but the placement of the pattern is not ideal. Hence, one may expect a minor upside bounce from here, but the sustainability of this bounce could be a big question on the market, said Nagaraj Shetti, HDFC Securities.
Strong put writer additions were observed at 19,500, which is where maximum open interest on the put side is placed. The level of 19,500 will act as a strong support and the option activity at this strike will provide important cues about Niftys intraday direction, Samco Securities said.