Nifty Down 16% from Highs: Eyes on Next Support at 21,800

● Nifty 50 has declined by approximately 16% from its all-time high, signalling a significant correction in the market.
● The next crucial support level is anticipated around the 21,800 mark, a level where the index has historically found support on five previous occasions.

◉ OI Data Analysis
● The 22,500 strike price has the highest concentration of call writers, establishing it as a strong immediate resistance level.

● Conversely, the 22,000 strike price shows the highest accumulation of put writers, indicating robust support at this level.

◉ Valuation Analysis
● From a valuation standpoint, the Nifty appears attractive, currently trading at a Price-to-Earnings (PE) ratio of 19.7.

● This is notably below its 5-year average PE of 24.8, suggesting the index may be undervalued relative to its historical standards.