The Nifty 50 Dilemma: Which Way Will the Index Swing?

◉ Technical Analysis
● Nifty has formed a Falling Wedge pattern on the daily chart, typically considered a bullish signal.
● Simultaneously, a Three Black Crows candlestick pattern has emerged over the last three sessions, indicating bearish sentiment.
● The bearish pattern is significant as it has formed near the trendline resistance, suggesting a potential pullback toward the 23,000 level.

◉ OI Data Analysis
● The 23,600 level has the highest call writer concentration, acting as immediate resistance.

● The 23,200 level shows the highest put writer accumulation, serving as strong support.


◉ Possible Next Move
● If the index opens with a slight gap-up below 23,600, selling pressure is likely to continue in the coming week.
● Even with a significant gap-up above 23,600, a bearish scenario may persist.
● For a confirmed trend reversal, the index must decisively break and hold above the 23,800 level.