The Nifty 50 extended its decline for a second consecutive session on Thursday, plunging 371 points to close at 22,231. The sharp fall took the benchmark to its lowest level since April 7, 2025 and marked a fresh low for the current downswing. The index has remained under pressure as selling continues to dominate the broader market, with investors tracking global cues, crude oil prices, foreign fund flows and domestic monetary policy developments.
According to Sudeep Shah, Head - Technical and Derivatives Research at SBI Securities, the Nifty is likely to face immediate resistance in the 22,350-22,400 zone. “As long as Nifty remains below the 22,400 mark, the prevailing bearish trend is expected to continue,” Shah said.
He expects the index to potentially extend its decline towards 22,100 in the short term, with the next key support around 21,950. “A sustained move above 22,400 will be required to ease the immediate downside pressure and improve the short-term outlook,” Shah added.
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The setup therefore remains tilted towards the bears, with 22,400 emerging as the key level that traders need to watch on the upside. Failure to reclaim this zone could keep selling pressure intact and expose the index to further losses. However, the sharp fall has also brought the Nifty closer to the psychologically important 22,000 level, raising the possibility of a short-covering or mean-reversion bounce.
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“A short-covering or mean-reversion bounce may emerge near 22,000, but the market is likely to remain vulnerable to selling unless the Nifty reclaims 22,400–22,600,” said Hariselvan Radhakrishnan, Founder & CEO of HST Wealth. According to Radhakrishnan, a meaningful recovery would require several external factors to turn supportive.
“Crude needs to retreat sustainably, global yields need to stabilise and foreign selling needs to moderate,” he said.
Bank Nifty Outlook
Bank Nifty also remained under heavy selling pressure, with attempts at recovery attracting fresh selling during the session. “Bank Nifty ended sharply lower, facing persistent selling pressure throughout the session. The index drifted lower as attempts to recover attracted fresh selling, limiting any meaningful rebound,” said Ponmudi R, CEO of Enrich Money.
On the downside, 54,400 is the immediate support level for Bank Nifty. A decisive break below this level could extend the decline towards 54,000-53,800. On the upside, reclaiming and sustaining above the psychological 55,000 mark remains crucial. The next resistance is seen at 55,200-55,400.
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