Stock Market Today: Nifty, Sensex Decline Most In Three Weeks As RIL, HDFC Bank Drag

The Nifty indicated weakness by forming a red candle on the daily scale, according to Hrishikesh Yedve, assistant vice president of technical and derivatives research at Asit C. Mehta Investment Intermediates Ltd.

It has been forming a bearish candle for the past four days and is struggling to maintain higher levels, according to Hardik Matalia, derivative analyst at Choice Broking. "This pattern suggests a pause in the ongoing breakout, requiring confirmation for a sustainable move," Matalia said.

The 50-day simple moving average is placed around 23,740 on the upside, which will act as a crucial hurdle for the index, followed by 23,800, Yedve said.

On the downside, 23,300 serves as a key support level, according to Matalia and a break below this mark could set off extended selling toward 23,000.

On the upside, immediate resistance is seen at 23,500, Matalia said.

"Sustaining below 23,290 could extend further weakness in the index. Traders should closely monitor these levels for potential opportunities," Yedve said.

Matalia recommends traders maintain strict stop-loss measures due to heightened market volatility and avoid overnight positions to protect their capital.

"For a continued uptrend, the Nifty index must sustain above the 23,800 mark, Matalia said.

The Bank Nifty has formed a small red candle near its previous breakout point of 49,650 on the technical levels, according to Yedve. He recommended a buy-on-dips strategy to be implemented for Bank Nifty as long as it remains above the support level of 49,650.

"On the upside, 50,600 will act as a stiff resistance for Bank Nifty in the short term," Yedve said.