Vinay Rajani, in an interview with ET Now, said that Nifty has experienced a steep correction, falling over 1,000 points from its recent swing high of 25,670. The index has now approached a crucial support zone between 24,500 and 24,600. According to Vinay, this zone coincides with the 100-day Exponential Moving Average, currently around 24,598. He also highlights that this level served as a consolidation base in June, making it a technically significant support area.
Vinay Rajani adds that the derivative data signals an oversold condition, with the FII long-to-short ratio in index futures at a very low 0.17. This extreme reading suggests that short-covering by FIIs could take place soon, increasing the potential for a technical bounce from this key support zone.
IANS