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Nifty

Selling pressure intensified as the index broke below the 23860 zone, aligning with expectations, and further weakness emerged once it slipped under the key 23500 support cluster. The decline has been marked by multiple downside gaps, which are likely to act as strong resistance levels in upcoming sessions. Unless these gaps are filled on the upside, the index is expected to remain under sustained unwinding pressure. Momentum indicators reflect this weakness, with RSI falling below the 50 mark, while ADX hovering near extreme levels indicate strengthening of the current bearish trend. After a sharp decline over the past four sessions, a brief pause or consolidation cannot be ruled out ahead of the expiry. However, a decisive breakdown below 23500 would open the door for further downside, potentially dragging the index towards the 23150 gap support zone, which stands as the immediate support for the week. In the absence of any clear intraday reversal signals, the broader bias is likely to remain negative. Traders are advised to stay stock-specific and avoid initiating fresh long positions unless a clear daily reversal is observed or the index manages to break above 24140 (50 DEMA). Until then, maintaining a short bias remains prudent, with a stop-loss placed above 23800 on a closing basis, targeting a potential move towards the 23150 zone

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