The next support level for the Nifty emerges straight away at 17,700. There is no intermediate base between 18,000 and 17,700 and that is a problem for the market which has big gaps and which is driven, sometimes, by these newsflow of HDFC and HDFC Bank merger.

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Trade setup for Apr 6: Can bulls push Nifty across 18,000 decisively?

On Tuesday, the risk reward was not in the favour, after the massive rally and the gap up. What the market might do today is it will trap those who managed or maintained their long positions yesterday despite the market’s warning in the last hour of trade yesterday.

The maximum put build up is at 18,000 with a premium of Rs 100 and it looks like those put writers are in for some serious pain in the morning trade itself.

Watch the accompanying video of CNBC-TV18’s Anuj Singhal for more details.

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