Nifty made a pattern of alternating between up and down days for the seventh consecutive day on Thursday to end 26 points lower and form a small bearish candle on Budget Day.
The trend may continue to be volatile on Thursday, especially as the Interim Budget will be delivered. Support on the lower end is situated at 21,500, while a decisive move above 21,750 might trigger a rally towards 22,100 and beyond.
OI data showed that on the call side, the highest OI was observed at 21,700 followed by 22,000 strike prices while on the put side, the highest OI was at 21,500 strike price.
Nifty on Thursday ended 101 points lower to form a small negative candle with a minor lower shadow on the daily charts, indicating a sell-on-rise opportunity in the market on monthly F&O expiry.
The short-term trend of Nifty seems to have reversed up, but the uncertainty remains in the market at the highs. The market could encounter strong resistance around 21,500-21,600 levels in the coming session. Immediate support is at 21,220 level, said Nagaraj Shetti of HDFC Securities.