Nifty's Weekly Performance: Key Levels to Watch for Monday

The weekly chart of the stock market showed Nifty forming a small bullish candle, which may be a reversal pattern. These candles, which have minor upper and lower shadows, are generally indicative of indecision in the market. Nagaraj Shetti of HDFC Securities said that this setup could turn out to be a reversal if confirmed in the next sessions.

However, the short-term trend of Nifty remains weak and is trading in a defined range. The key level to watch is 23,400. A decisive breakout above this level could trigger fresh buying interest. On the downside, immediate support lies at 23,100, which traders need to watch closely to gauge market sentiment.

Further information on the traders' behavior is obtained from open interest (OI) data. On the call side, high OI has been observed at 23,300 and 23,500, which is considered as resistance zones. On the put side, significant OI at 23,200 and 23,000 strike prices indicates strong support zones.

For traders gearing up for Monday, keeping a close eye on these levels could be critical. A sustained move above 23,400 may set the stage for bullish momentum, while a breach below key support levels could reinforce the ongoing weakness.