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Nifty

Yesterdays sharp sell-off further weakened the technical setup, with the index decisively breaking below 22,400 support and closing beneath its 200- week EMA. The immediate focus shifts to whether Nifty can stabilise around 22,200. Any recovery is likely to encounter selling pressure in the 22,400– 22,600 zone, making a sustained reclaim of 22,400 crucial for the first signs of stabilisation. Derivatives data reinforces the cautious outlook, with PCR slipping to 0.62 and Call OI at 22.63 crore versus Put OI of 13.94 crore. Fresh Call OI additions were concentrated at 22,500, while 23,000 remains the major overhead hurdle. Put OI additions at 22,000 and 21,000 indicate that support is shifting lower, while the 22,400 max-pain level offers only a reference point, not assured support. Although deeply oversold conditions leave room for a technical bounce, a reversal remains unconfirmed. A decisive break below 22,200 could expose 22,050, while rallies may attract selling until 22,400 is reclaimed. Traders should prioritise capital preservation and await price confirmation before taking aggressive directional positions.

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