Stock Market Highlights: Nifty to extend weakness below 23,290, forms red candle. How to trade on Tuesday

The Nifty index opened on a marginal negative note, saw selling pressure, and finally settled the day on a negative note at 23,382 level. The volatility index, India VIX, rose 5.55% to 14.45, indicating an increase in market volatility.

Technically, Nifty formed a red candle on the daily scale, indicating weakness. However, the index found support near the 21-day simple moving average (DSMA), which is placed at around 23,290; on the upside, the 50-DSMA is placed at around 23,740, which will act as a crucial hurdle, followed by 23,800. Sustaining below, 23,290 could extend further weakness in the index. Traders should closely monitor these levels for potential opportunities, said Hrishikesh Yedve of Asit C. Mehta Investment Interrmediates.

In the open interest (OI) data, the highest OI on the call side was observed at 23,600 and 23,500 strike prices, while on the put side, the highest OI was at 23,300 strike price followed by 23,400.