Nifty 50 on Tuesday lost the psychological mark of 24,000 despite seeing a strong start. The levels of 24,350–24,400 -- the gap area formed on Monday -- proved too strong. The 50-pack index formed a small bearish candle on the daily chart and was near its 50-day exponential moving average (EMA) placed at 23,964. Analysts said a fall below 23,893.70, which was Nifty's low on Monday, could send the index towards 23,600 levels. Any upside, they said, should be sold into.
For the day, the index closed the day at 23,992.55, down 63.05 points or 0.26 per cent.
Jatin Gedia of Sharekhan said the market weakness is likely to persist. Incase of a pullback towards the resistance zone 24,300–24,350, it should be used as a selling opportunity, Gedia said.
The crucial Fibonacci retracement level is placed at 23,628 and 23,280 is the 20-week moving average, Gedia noted.
Although the momentum favors the bears, the hourly indicators are in the oversold zone, suggesting intermittent rebounds cannot be ruled out, said Rajesh Bhosale, Equity Technical Analyst at Angel One.
"Any such bounces, similar to today, should ideally be viewed as selling opportunities. As for key levels, 24,250 appears to be immediate resistance, while the 24,350-24,400 range remains a challenging barrier for the bulls. Only a close above this range could potentially revive some positive momentum in the market. On the downside, immediate support is seen at 23,900-23,850, below which the Nifty may slip towards the 23,600-23,550 levels," Bhosale said.
Bhosale said traders should monitor these levels closely and adjust their trades accordingly, while also keeping an eye on global developments, as our markets are particularly influenced by global momentum.
"Nifty might recover towards 24,400-24,440 (21-EMA), where selling pressure is likely to occur once again; or, it might fall straight away to 23,965 (50-EMA)/23,650," said Rupak De, Senior Technical Analyst, LKP Securities.