Considering the persistent weakness in the market, deterioration in technical and momentum indicators, and oil prices moving closer to $100 a barrel amid heightened West Asia tensions, the bears are expected to maintain the upper hand. The Nifty 50 is likely to break below its July low of 23,606, after which the 23,300 level is expected to act as the next support zone. On the upside, 23,800 is likely to be the immediate resistance, followed by 24,000, which is expected to act as a crucial hurdle. Meanwhile, the Bank Nifty has also witnessed a breakdown from its consolidation range. Hence, if the index falls below Tuesday's low of 56,720, the correction could extend towards 56,500-56,000. On the higher side, the 57,000-57,400 range is expected to act as a key resistance zone, experts said.
On September 8, the Nifty 50 dropped 144 points, or 0.61 percent, to 23,635, while the Bank Nifty slipped 311 points, or 0.54 percent, to 56,778. Market breadth remained in favour of the bears, with about 1,764 shares declining compared with 1,492 advancing shares on the National Stock Exchange.
Rajesh Dashrath Bhosale, Fund Manager - Advisory at Renaissance
Sentiments remain weak as Nifty continued to slide and is now testing the July swing low around 23,600, from where the index had rallied more than 1,100 points in just seven trading sessions. The correction from the August high to this key support has taken more than a month, making 23,600 a crucial level to watch in the coming sessions.
A sustained close below 23,600 could trigger further weakness, with prices likely to slip lower in the near term. Although oscillators have entered the oversold zone, this alone does not confirm whether the support will hold or indicate when bulls are likely to return.