Nifty ended marginally lower on Thursday dragged by IT and consumer stocks though auto, metals and realty stocks saw positive action and capped the losses. The index is facing resistance near the 20EMA on the daily timeframe, indicating continued selling pressure at elevated levels.
Rupak De, Senior Technical Analyst at LKP Securities said the RSI remains in a bearish crossover and is trending lower, reflecting weakening momentum. "The overall sentiment continues to remain weak, with the possibility of further downside in the short term. On the lower end, 23,400 is likely to act as a crucial support level; a decisive breach below this mark may trigger panic selling in the market. Conversely, the index needs to move decisively above 23,800 to witness a directional rally and improve the near-term sentiment," De said.
