However, the market witnessed weakness in the second half of the session. The headline index ended the session with a net loss of 171 points or 1.07 percent.
Throughout the day, heavy call writing was witnessed at the 15,800 level; This strike price added over $4.9 million to the call open interest. This saw Nifty’s resistance move lower from 16,000 to 15,800 levels as maximum call OI at this point followed by 15,900.
This means that the 15,800-15,900 zone will offer serious resistance from here onwards. A near-identical put OI was seen in the 15,700-15,500 zone on the lower side.
Volatility as India VIX rose 8.33 percent to 12.6800. Monday’s session has caused some technical damage on the charts; The 15,900-15,950 zone has now become an intermediate top for the Nifty unless it is pulled out solidly.
Nifty is likely to see a slow start to Tuesday’s trade, and 15,790 and 15,845 levels will act as potential resistance points, while support will come at 14,700 and 14,605 levels.
The relative strength index (RSI) on the daily chart stood at 51.44; It remains neutral and shows no divergence towards the price. The daily MACD is bearish and trading below the signal line. There was a Doji on the candles. However, more importantly, a falling window also occurred. This resulted in a gap-sow start, and as this falling window candle occurred near the resistance point, it has strengthened the credibility of the resistance in the 15,900-15,950 area.