Even 20 ema, on the daily chart, is breached and closing is much below it.
Today, not the index even the stock has given bearish move. There were chance of a retest but from the morning nifty was in a bearish mood.
It can given another red candle as there is a bearish divergence in RSI and volume are high.
Either it will retest the break down channel or consolidate after a gap up or flat opening.
Major support levels :- 21920, 21770, 21580
If there is a gap down opening, there can be another selling leg from the morning.
Resistance levels :- 22110, 22250
Tomorrow is weekly expiry for nifty and can be another trending day for it.
Wait for the price action near the levels before entering the market.
If tomorrow market starts trading below today's low, it can test the lower levels provided and bearish trades can be entered in the index.
In case of a gap up opening, there will be confusion in the market and it can again close with a long lower wick on the weekly charts.
Weekly charts is showing some weakness as it is giving a lower movement before moving in the upper direction.
Major support levels :- 21920, 21750
It respected the parallel channel and has formed a scenario of a bearish trend. Confirmation for entering the trade will be there once it breaches today's low.
Resistance levels :- 22250, 22440
Wait for the price action near the levels before entering the market.
:)