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The index continued to face selling pressure as it also slipped below its 20 DEMA support level of 22360 & closed the day below it. The next deciding support now stands around the 22120-22000 mark which is the lower end of the weekly channel support followed by 21800- 21766 (20 WEMA Support). The gap at 22500 would now serve as an immediate resistance zone above which a trail stop could be considered to hold fresh short selling positions. Being the truncated week & both trend strength indicators far away from their oversold zones there is a good chance for an extended selloff to continue throughout the week. With no signs of recovery, uptick if any due to an oversold intraday reading could provide further opportunities for a sell on rise trade. Options data too indicates 22500 to remain as a stiff resistance while 22200 followed by 22000 to remains key support zone for validation of trend weakness. Given that the index is likely to revisit its weekly channel pattern support base at 22000, it is best to exercise caution when pursuing any pullback moves or to discontinue the buy on declines strategy until a reversal formation is evident on its weekly scale.

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