📉 After the Bloodbath, a Relief Rally — But Will It Hold?

Nifty & Bank Nifty Bounce Back on Short Covering — But Resistance Still Looms

Good morning, all 

After Monday’s bloodbath, markets bounced back strongly on Tuesday.

Nifty 50 closed up by 1.69% at 22,535, showing sharp recovery.
Bank Nifty also rose 1.31%, ending the day around 50,511.

Sectors like Metals, Pharma, and IT, which were worst hit on Monday, saw some relief buying.

NIFTY ANALYSIS 

Nifty opened higher, touched a high of 22,697, and closed strong near 22,535.
A bullish candle was formed on the daily chart — but resistance at 22,700 still holds.

OI Data & PCR:

• PCR: 0.85 around ATM and 0.7 overall → Neutral to slightly bullish

• Nifty 50 Futures OI: -5.9% ↓ → Short Covering seen

Support: 22,500 and 22,300
Resistance: 22,700 and above
View: Neutral to slightly bearish. If 22,700 breaks with strength, view may turn bullish.

BANK NIFTY ANALYSIS

Bank Nifty also recovered with a long-legged candle on the daily chart.
Still, it’s struggling to break out above the upper end of the channel.

• Bank Nifty Futures OI: -6.01% ↓ → Short Covering

Support: 50,300
Resistance: 50,750
View: Neutral to bearish. Watch for a breakout above 50,750 for trend confirmation. Until then, stay cautious.

Let’s see what the market brings today. Stay sharp, manage your risk