Nifty - Potential downside till 17830 tomorrow if 17960 breaks

Nifty broke from its bearish wedge pattern and gave a big downmove today. At the moment it has closed today at the 61.8% retracement of current SH 18473 and SL 17774.

If Nifty opens flat tomorrow there is potential support at 17960-18010 which has held up multiple times. So any break below in the second half of the day and since it is an expiry tomorrow the move downwards will be accelerated with and can be capitalised with targets of 17900 (where there are multiple MA/EMA supports) and 17830. In case of a gap down below this region PA needs to develop to warrant further action.

A gap up around 18100 would probably go for selling again as sellers will find a good opportunity to short higher if anyone would have missed out today.

FII option also supports this with a heavy put buying of 83k and call selling of 88k today. Overall PCR is at 0.5 which is coming close to oversold category. Hence a little caution is warranted.

On the long side, Nifty needs to cross 18125 convincingly for short covering but has multiple resistance above at 18165 and then 18230.

Disclaimer - This is not trade recommendation or advice. This is purely for educational purposes. Do your own research before entering into a trade.