After severe selling pressure and broad-based weakness, the market is expected to consolidate in the coming sessions, while elevated oil prices may keep sentiment cautious. Technically, the Nifty 50 needs to defend the 22,372 support level, which coincides with Friday’s low and the 200-week EMA. A break below this level could increase the likelihood of a further decline towards the recent swing low of 22,180. However, if the index manages to hold this support, it could rebound towards 22,800-23,000. Meanwhile, further correction in the Bank Nifty could put the 53,800-53,700 support zone at risk. A break below this zone could intensify selling pressure. On the upside, any rebound may face resistance in the 54,500-55,000 range, followed by resistance at 55,300, according to experts.
On October 23, the Nifty 50 fell 88 points, or 0.39 percent, to close at 22,600, while the Bank Nifty declined 638 points, or 1.16 percent, to 54,287. Market breadth remained firmly in favour of the bears, with 2,863 stocks declining against 434 advancing stocks on the NSE.
Osho Krishan, Chief Manager - Technical & Derivative Research at Angel One
The broader market witnessed widespread weakness, with the mid-cap and small-cap indices registering significant declines, further dampening overall market sentiment. From a technical perspective, the Nifty 50 failed to sustain above its 20-day exponential moving average (20-DEMA) after struggling around this level for a couple of sessions. The index subsequently extended its decline towards recent lows. Moreover, the Relative Strength Index (RSI) has generated a negative crossover, signalling weakening momentum and warranting a cautious approach in the current week.
In terms of key levels, 22,500 remains a crucial juncture. A decisive break below this level could accelerate the decline towards 22,200 in the intermediate term, with the psychological mark of 22,000 potentially coming into focus thereafter. On the upside, the 20-DEMA, placed around 22,840, is likely to act as immediate resistance. A sustained move above this hurdle would be essential to revive positive momentum and pave the way for a potential retest of 23,000, followed by 23,150 in the near term.