Nifty Vulnerable to 22,950 as Analysts Flag Sustained Selling Pressure

Market Update: Benchmark Indices Sensex and Nifty Decline for Fourth Consecutive Session

The benchmark equity indices Sensex and Nifty declined for the fourth consecutive session on Monday, falling over half a percent amid weak global cues. After a flat opening, the Nifty gradually drifted lower through the session and settled near the day's low at 23,382.60, down 165.15 points or 0.7 percent.

The Sensex fell 508.40 points or 0.68 percent to close at 74,267.34. During the day, it touched a high of 75,367.93 and a low of 74,203.68, swinging 1,164.25 points. Analysts say the Nifty could slip to 22,950 if selling pressure persists.

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According to Sudeep Shah, Head of Technical and Derivatives Research at SBI Securities, the immediate support for Nifty is placed in the 23,250-23,230 zone. A sustained move below this zone could result in Nifty extending its weakness towards 23,100, followed by 22,950 in the short term. On the upside, the immediate resistance for Nifty is placed in the 23,530-23,550 zone.

Ajit Mishra, SVP, Research, Religare Broking, notes that technical indicators continue to signal further pressure on the Nifty, with immediate support seen in the 23,150-23,250 range. A decisive breach below this range could trigger a fresh leg of decline. On the upside, the 23,600-23,800 zone is likely to act as a strong resistance area in the event of any rebound.

Rupak De, Senior Technical Analyst at LKP Securities, says the Nifty continues to weaken after failing to withstand selling pressure at higher levels. The index encountered resistance near the 20-day EMA, while on the downside, it slipped below its previous swing low, indicating weakening market structure. Overall sentiment is likely to remain bearish, with the RSI witnessing a bearish crossover, further reinforcing negative momentum. In the short term, the index may drift towards the 23,200 level. On the upside, immediate resistance is placed around 23,500.

Sector-wise, FMCG, realty, and auto stocks were the top losers. IT and metal shares, however, showed relative strength and helped limit the overall decline. The broader market underperformed the benchmarks, with the midcap index declining nearly 1.47 percent and the smallcap index falling around 1 percent, reflecting cautious sentiment beyond large-cap stocks.

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