Technically, the index broke last week’s low, which was near 23,816 and sustained below 23,800, triggering a fresh breakdown. Due to heavy selling pressure, the index has tested its 200-day exponential moving average (DEMA) support which is placed around 23,540. The index ended up forming a bearish candle.

A strong break below 23,500, will push the index further lower to 23,300-23,200 levels, where the trend line support is placed. Overall, market sentiment appears to be negative, but we’ll have to see how the Nifty behaves around the 200-DEMA support, said Hrishikesh Yedve of Asit C. Mehta Investment Interrmediates.

In the open interest (OI) data, the highest OI on the call side was observed at 23,700 and 23,600 strike prices, while on the put side, the highest OI was at 23,500 strike price followed by 23,400.