After making a new high of 18881, nifty collapsed for more than 800 points in just 16 trading sessions. Price couldn’t sustain above 18434 to enter in Bullish scenario.
The closing price of yesterday was 18127, which is close to 18100, a psychological support level. Three shreds of evidence support this level as a support level. In the past, a breakdown of 18100 has led to supply pressure as well.
Today, we can expect bearish movement. Nifty has the potential to gap down for more than 100 points in many scenarios. A breakdown of 18100 will drive prices to the lower band of the channel where demand takes birth. In the event that buyers take back the trend, there may be excess at the lower band of the parallel lines.
A safe buying scenario is only possible above 18434.
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