Stock Market Highlights: 23,350 is a major hurdle for Nifty, weak trend continues. How to trade on Wednesday

A small positive candlestick has been formed on the daily chart with a bullish gap and a long upper shadow. Technically, this market movement indicates a bullish bounce in the market with no strength to sustain the highs.

The negative chart pattern such as lower highs and lows is still intact on the daily chart and the current bullish bounce may open another lower high formation in the short term.

In case of further rally, Nifty may face a strong hurdle at the recent bearish gap on January 13 around 23,350 levels. Nifty’s near-term trend remains weak and we expect this bullish bounce to be a selling opportunity on the rally around 23,350 levels. Immediate support lies at 23,050 levels, HDFC Securities’ Nagaraj Shetty said.

In the open interest (OI) data, the highest OI was observed on the call side at 23,200 and 23,400 strike prices, while on the put side, the highest OI was at 23,200 strike prices followed by 23,050.