After 3 sessions of recovery where Nifty climbed back to 23,777, today market opened with a **massive gap down of nearly 550 points **and is currently sitting at 23,217. The chart was already showing exhaustion at the 23,800 level and anyone watching closely could see buyers were not really convinced up there.
On top of that HDFC Bank chairman suddenly resigned today which crashed the stock nearly 5%, and HDFC Bank alone has massive weightage in Nifty so that added extra pressure to the fall.
Looking at the chart from the image, Nifty has now fallen back below all moving averages after that brief 3 day recovery. Immediate support is at 23,200 to 23,100 and if that breaks then 23,000 and 22,700 come into picture fast. FIIs have now been net sellers for 14 consecutive sessions, DIIs are buying but not enough to absorb this kind of pressure.
This is not the time to panic but also not the time to be overconfident. 23,000 holding or breaking will decide where we go from here. So the big question today is, was this 3 day recovery just a trap that big players used to exit at higher levels like we discussed earlier?