Undertone bearish, VIX rises 1.5%

Motilal Oswal Wealth Management

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Nifty index opened gap up by almost 100 points and gave up strength right from the initial tick. It cascaded most part of the day and wiped off its gains of the previous session. It took some respite at 25,600 zones and witnessed slight bit of recovery in the last hour. It formed a bearish candle on the daily frame with longer lower shadow indicating buying at support levels and negated its lower highs — lower lows formation of the last five sessions. Now it has to cross and hold above 25,800 for strength to rebuild towards 25,900 then 26,000 marks while support can be seen at 25,600 then 25,500 zones.