Nifty Rejects Key Resistance
We’ve seen the Nifty react precisely from the 24,300 resistance zone, confirming the weakness we anticipated. With the index now trading below 23,900, traders should focus on capital protection. The quick 400-point slide suggests that sellers are currently in control. This sharp move has caused a spike in volatility, with the India VIX jumping from below 13 to over 15.5 in just a few trading sessions. This means option premiums, particularly for puts, are becoming more expensive. Traders should account for this higher cost when initiating new positions. We are also seeing a clear shift in institutional flows that supports this cautious outlook. Foreign Institutional Investors (FIIs) have been net sellers for five consecutive sessions, offloading over ₹12,000 crore this month. While domestic institutions are providing some support, the sustained foreign selling is a significant headwind. This price action is reminiscent of the consolidation we witnessed in the second quarter of 2025 after a strong rally. That period also saw a sharp, swift correction of nearly 5% before the market found a stable base. A similar defensive posture could be warranted now.Levels To Watch Next
Given the breakdown, traders could consider strategies that benefit from range-bound action or further downside, with 23,500 acting as the next major support level. As we approach the March series expiry, expect volatility to remain elevated. Pay close attention to how the index behaves around these key psychological levels. Create your live VT Markets account and start trading now.
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