- Nifty 50 fell over 100 points, dropping below 23,700, its lowest in over a month
- Sensex declined more than 400 points, trading near 75,700 amid intensified selling
- Momentum indicators like RSI and MACD show strengthening bearish trends for Nifty 50
The Indian stock market resumed its downward trajectory on Tuesday, with the benchmark Nifty 50 falling more than 100 points and slipping below the 23,700 mark during the session.
As the selloff intensified, the BSE Sensex declined more than 400 points, or 0.5%, to trade near the 75,700 level, while the NSE Nifty 50 fell over 100 points to fall below 23,700, hitting its lowest level in more than a month.
The Nifty 50 has declined in eight of the past 10 sessions and has fallen more than 1,100 points from its recent high of 24,774 on August 3.
Technically, analysts believe the short-term structure remains bearish, with the Nifty 50 trading firmly below key moving averages, all of which are trending lower.
Next Key Levels For Nifty 50
Sudeep Shah, Head of Technical and Derivatives Research at SBI Securities, said momentum indicators also remain weak. The daily Relative Strength Index (RSI) has slipped further to 32.40 and continues to trend lower, indicating strengthening bearish momentum.
“Meanwhile, the daily MACD remains in bearish territory, trading below both its signal line and the zero line. Notably, the MACD histogram has stayed below the zero line for the past 18 trading sessions, reinforcing the prevailing negative trend,” Shah said.
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Going forward, Shah expects the 23,720 – 23,680 zone to act as a crucial support area for the Nifty 50. The zone coincides with the 61.8% Fibonacci retracement of the previous upmove from 23,070 to 24,774.
“A decisive breach below 23,680 could intensify selling pressure and drag the index towards the next important support level at 23,550, followed by 23,400 in the short term,” Shah said.
On the upside, he expects the 23,870 – 23,900 zone to act as an immediate resistance for the Nifty 50.
Ponmudi R, CEO of Enrich Money, said 23,600 remains a crucial support zone for the Nifty 50, and sustaining above this level will be important to prevent further deterioration.
“A decisive break below 23,600 could intensify selling pressure and expose the index to lower support levels. While the RSI hovering around 32 reflects weak momentum and is approaching oversold territory,” Ponmudi R said.
Overall, he believes the near-term outlook remains cautiously bearish.
On the upside, the 23,800 level, which previously acted as an important support, is now likely to turn into an immediate resistance.
“A sustained move above 23,800 could help stabilise the Nifty 50 and trigger a recovery towards the 24,000 psychological resistance,” he said.
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