Sharp slide on Friday has soured the short term sentiment further. Four weeks of decline now. Still near the lows of the weekly candle of 23 June. So, price damage is still limited- meaning, this is still just a mild correction.

With 24800 threatened the, support now shifts lower, to 24750-24600 area. The lower bounds of that zone is a buying area for now. So, plan for that, if reached. Those that wish to short, that area would be the target.

Sharp slide in PCR to around 0.60, as call shorts pile up. Rallies will find it tough to move higher- unless some big news shows up. Nothing on the horizon just now. So expect ranging or slow declines or limited rallies for the next 2-3 sessions. All call shorts are more recent so premium wouldn’t have been much. Makes the important strike to 25200 now (down from 25350 earlier).

Situation not so different in BNF. 57000 continues to be main resistance but call shorts now start all the way from 56500. Lower puts seem to have taken the money and run, leaving the door for declines wide open, if there were to be one. So, declines are to occur, it will emerge from the banking space. Here too PCR is down to 0.67.

If there are intra day rallies or higher opens for any reason that will probably get sold into, so don’t get sucked into any premature longs. The number of stocks with short build ups were about 10:1 compared to the long future OI build up. So think shorting by default. Let market say different before you act different. Bajaj Finance, Metal stocks, KFIntech etc all look set for more weakness.

If there is a consensus in a move, remember that Jane Street is back in the game and will create volatility to throw people off the scent. Their entire play book is by sending people down the wrong road. Sebi is happy with the money they got but JS may be back at its shenanigans. Maybe all that was just a drama. JS style is Pump and Dump. Be alert of that if you are active in options.