The Nifty 50 index formed a bearish candle with a long lower shadow, similar to a hammer candlestick pattern, on the daily scale. Analysts who study charts have said that this pattern indicates buying can be seen at support zones, but the absence of follow-up is resisting it at higher zones.To witness a bounce towards 17,171 and 17,250 zones, the Nifty 50 index now needs to cross and hold above 17,071 zones. However, supports are seen at 16,850 and 16,800 levels on the downside.India's VIXIndia's VIX, a measure of market volatility, was up by 8.38% from 14.77 to 16 levels. The increase in volatility over the last three weeks is giving some discomfort to the bulls.Option Chain DataOption data suggests a broader trading range between 16,700 and 17,400 zones, with an immediate trading range between 16,800 and 17,200 zones. According to option chain data, the Nifty 50 maximum PUT writers are at the level of 16,900 and 16,700, and the maximum CALL writers are at the level of 17,100, 17,200, and 17,300.In intraday trading, when we analyze the candlestick pattern in the 15-minute time frame, we find that the Nifty 50 took support at the level of 16,840, which acts as strong support. The resistance levels for the Nifty 50 are at 17,050 and 17,148.Here is the trade setup for Tuesday, March 21, 2023:- If the market opens in the range of 16,920 to 16,970 and spends some time in this range and then closes the candle above 17,015, then the targets are 17,072, 17,115, and 17,188.- If the market breaks down the level of 16,845 and closes the candle below 16,850, then the targets are 16,800 and 16,740.- If the Nifty 50 breaks the level of 16,750, then it is likely to fall like a waterfall as 16,750 is the strongest support from the daily time frame.- If the Nifty 50 opens with a large gap up or down, it is recommended to follow the price action and wait for a good time when the market comes to our setup.Investors are advised to keep a watch on the above-mentioned levels to make informed trading decisions.
