The size of the daily candles for the last couple of days has been shrinking which indicates a sideways consolidation phase for the Nifty.

The index is closely trading above its 21-day exponential moving average on the daily interval. Maximum Call open interest (OI) is seen at 16,800 strike which will be a crucial level for this expiry.

On the downside, massive OI addition is visible at 16,500-16,600 strikes.

For the last couple of trading sessions, market breadth is in the favor of the bulls.

In terms of ratio, for every two positive closings, there is one negative closing.

We have also spotted a bullish hidden divergence in the RSI (14) wherein prices did not register a new intermediate low but the RSI formed a new low near 65 level on the daily interval.

The immediate support for the Nifty is placed near 16,400 level and resistance is pegged near 16,900 level.

Bank Nifty has made multiple attempts to break the resistance levels placed at 36,300–36,400 levels. But it has been unable to breach the upper band of the horizontal trendline on a daily scale.

The immediate support for the Bank Nifty is placed near 34,600 and resistance is pegged near 36,300.