Now Reading: Nifty below 23,000, analysts see more downside ahead
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Nifty below 23,000, analysts see more downside ahead
The Nifty 50 index closed below the crucial 23,000 level on Thursday, hitting its lowest since April, as selling pressure intensified across the board. Livemint reports the index broke down from an…
The Nifty 50 index closed below the crucial 23,000 level on Thursday, hitting its lowest since April, as selling pressure intensified across the board. Livemint reports the index broke down from an inside candle pattern and breached horizontal support near 23,070, confirming a breakdown from a four-month consolidation zone. NDTV Profit says this signals a continuation of the primary downtrend with sellers firmly in control.
The Hindu Businessline sees further weakness ahead, with Nifty vulnerable to a fall toward 22,600-22,500, while a break below 22,000 would negate its long-term bullish view. Livemint pegs the next support at 22,719 and resistance in the 23,282-23,350 gap zone. Foreign portfolio investors bought $402 million last week after three weeks of selling, but analysts say buying must accelerate to reverse the trend.
The Nifty Bank index fell 1.38% to 55,580.40, with support at 55,175. A break below that could drag it to 54,000, The Hindu Businessline notes. The 14-day RSI has shifted into super bearish territory below 31, and the MACD histogram has expanded on the downside, confirming bearish momentum.
Indian Opinion Analysis
All three outlets deliver neutral technical reporting, but their choice of support levels differs: Livemint and NDTV Profit highlight 23,000 as the immediate line, while The Hindu Businessline projects a deeper fall to 22,500-22,000 before a possible bounce. The difference reflects not disagreement but varying timeframes, short-term versus medium-term. The Businessline also explicitly retains a long-term bullish view above 22,000, a framing absent from the other two. FPIs turned net buyers last week, a counterpoint to the bearish price action that will matter if buying accelerates. The next test is whether Nifty holds above 22,500 in the coming sessions.
The RBI MPC meets on October 9, and the Q2 earnings season begins in mid-October, both could shift sentiment.
Coverage: 3 sources, 3 neutral
Sources (3): ndtvprofit.com (neutral report), livemint.com (neutral report), thehindubusinessline.com (neutral report)
This brief was synthesised by AI from the 3 sources linked above, so one read covers every framing they carry.
Updated: this story now draws on 3 sources.
