- Nifty's next support zone is 23,750–23,800, with resistance near 24,200–24,300 as per technical analysts
- Bank Nifty experienced sharp declines, breaking below recent consolidation and entering oversold RSI levels
- Investors will watch oil prices, geopolitical events, foreign fund flows, and earnings for market direction
Indian benchmark indices extended their losing streak for a third consecutive session on Tuesday as rising crude oil prices and a sharply weaker rupee weighed on investor sentiment. Market participants will now closely track oil prices, geopolitical developments, foreign fund flows and the ongoing earnings season for further direction.
Technical analysts believe the Nifty has entered a weaker phase after slipping below key moving averages and breaking an important rising trendline.
Nandish Shah, Deputy Vice President at HDFC Securities, said, "A breakdown below the rising trendline connecting recent swing lows on the daily chart further strengthens the bearish setup. Nifty now appears headed toward the next support zone of 23,750–23,800, while the 24,200–24,300 band is likely to cap any near-term rebound."
Shah noted that the index closed below its 20-day exponential moving average (EMA) of 24,084 and 100-day EMA of 24,136, while ending near its 50-day EMA of 23,992. He added that the Nifty also closed below the lowest level of the past nine sessions, indicating weakening short-term momentum.
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Sachin Gupta, VP – Technical Research at Choice Equity Broking, said technical indicators are signalling further weakness. "The Relative Strength Index (RSI) has entered a bearish crossover, indicating weakening momentum and suggesting that the market may remain under pressure in the short term. Rising crude oil prices continue to remain a key concern for Indian equities, while the Indian rupee weakened sharply, ending 33 paise lower at 96.57 against the US dollar, adding further pressure on sentiment," Gupta said.
According to Vikram Kasat, Head Advisory at PL Capital, investors will continue to monitor several domestic and global factors that could influence market direction.
Bank Nifty Outlook
Bank Nifty witnessed a sharp breakdown session, ending significantly lower after heavy selling pressure persisted throughout the day, according to Ponmudi R, CEO of Enrich Money. Ponmudi said the daily chart reflects a decisive bearish breakdown from the recent consolidation range.
On the hourly chart, the Relative Strength Index (RSI) had slipped into oversold territory during the sell-off before recovering to around the 30 mark, although it has yet to show any bullish divergence that would indicate an immediate reversal.
Going ahead, the 57,500–57,600 zone, which broke during Wednesday's decline, is expected to act as the immediate resistance. A move above this level could pave the way for the next resistance zone at 57,900–58,000, which the index would need to reclaim to improve short-term momentum.
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