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Nifty

Nifty reversed sharply from the 22,800 resistance zone yesterday, declining back towards 22,600 support after the RBI MPC raised the repo rate by 25 bps to 5.50% and shifted its stance to calibrated tightening. The move has weakened the immediate rebound structure, with 22,800 now emerging as a crucial hurdle. The index needs to reclaim this level to revive the recovery towards 23,000. On the downside, 22,600 remains the immediate make-orbreak support, followed by 22,400 and 22,000. Derivatives data also remains cautious. Nearest-expiry PCR slipped to 0.81 from 1.13, while fresh Call OI additions were concentrated at 22,800, 22,600 and 23,000, indicating rising overhead supply. Put OI witnessed notable unwinding at 22,700 and 22,450, while the broader PCR stood at 0.89, reflecting a defensive setup. Yesterday’s rejection near 22,800 and the bearish reversal candle warrant caution, although the oversold setup and positive price-RSI divergence could limit aggressive downside. With TCS Q2 results due today and crude remaining elevated, volatility is likely to stay high. Traders should avoid aggressive longs below 22,800 and monitor 22,600 closely; a sustained break below this level would weaken the rebound further.

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