Nifty takes U-turn amid Hormuz Escalation
Nifty falls to 22300 after breaching support of 22500 in opening hour amid Hormuz Escalation as Iran says strait to remain close and Trump orders new strikes before November.
As of 12:14 IST, 8 Oct
Nifty breaks below 22,500 invalidating the bounce setup and bring back selling pressure, making intraday low of 22328, technically it has opened door for 22000-21700 levels but market may remain volatile in the range till 22200 is breached.
On the higher side 22800 is now key for any reversal in the market to signal a reversal on daily chart.
Higher rates going forward and shipping cost of $30-40/barrel is keeping the delivered crude prices near $145/barrel in physical market, while refining products are already out of control fueling inflation globally.
Technically Nifty has breached a larger consolidation range and below 22,200, the market may see sharper decline to 21700-21300 levels.
Momentum plot for NSE200 has also turned negative with most stocks showing bearish momentum.
Sensex oi plot shows bearish undertone for the expiry with PCR at 0.75 and long buildups in puts and short build ups in calls spread from 71500(Peak Put OI)-72500 (Peak Call OI) suggesting the expiry could be volatile on either side with bearish sentiment.
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