Nifty Maintains Weak Lower-High, Lower-Low Structure - Tradebulls Securities Pvt Ltd
Nifty
Nifty continues to maintain a lower-high, lower-low structure, with key moving averages sloping down, keeping the broader technical setup weak. Yesterday’s small-bodied bearish candle with an upper shadow indicated continued selling pressure on recovery attempts. At the same time, RSI at 25 remains deeply oversold, keeping the possibility of a technical rebound alive, although there is no confirmed trend reversal yet. The 6 October weekly option chain remains defensive, with PCR around 0.65, sizeable Call OI concentrated between 22700–23000, and Put OI around 22500–22600. The 22600 Put saw substantial OI addition alongside a sharp rise in premium, suggesting defensive Put demand rather than comfortable Put writing. With the expiry-day low at 22595, 22500 becomes the immediate technical pivot. Sustaining above 22500 could trigger a pullback towards 22800–23000, while a decisive break below 22500 could unlock fresh downside towards the 22400–22000 zone. India VIX at 13.49 remains relatively contained despite the sharp September correction. A meaningful VIX expansion alongside a break below 22600 would reinforce downside risk. Hence, the October series begins with a weak but oversold setup. A sustained reclaim of 23000 would be required to materially improve the structure; until then, rallies are likely to face selling pressure, favouring stock-specific opportunities with disciplined risk management
SEBI Registration number is INH000000081.
Please refer disclaimer at https://geplcapital.com/term-disclaimerg
