Will the Nifty's corrective trend continue? The weekly options expiry has come and gone, but the impact on the markets is still being felt. With a loss of 167.20 points, the question on every trader's mind is - what's next?
The Nifty's performance on Tuesday was a mixed bag, with the index staying in negative territory throughout the day. The corrective pressure was palpable, with gradual lows being formed during the session.
The Nifty opened lower and stayed in the red, closing with a net loss of 167.20 points (-0.64%). The weekly options expiry seemed to have had a negative impact on the markets.
Looking at the Indian market context, the Nifty's corrective trend is not entirely surprising. The Bank Nifty has been under pressure lately, and the Sensex has also been experiencing a downturn. Historically, the Nifty has shown a tendency to consolidate after a strong rally, and this correction could be a sign of that.
From a trader's psychology perspective, the fear of missing out (FOMO) is still prevalent in the market. However, the weekly options expiry has brought some much-needed reality check to the market. The Nifty is likely to remain volatile in the short term, with the 200-day moving average acting as a crucial support level.
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Disclaimer: The views expressed in this article are for educational purposes only and should not be considered as investment advice. Please consult a financial advisor before making any investment decisions.
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