Nifty needs to reclaim 23,000 level to maintain bullish momentum, says analyst - Check key trading levels

The Sensex declined 143.21 points or 0.19 percent to settle at 73,709.69. The index opened in positive territory and surged 829.29 points or 1.12 percent to hit an intraday high of 74,682.19. However, it pared its gains and fell to a low of 73,229.45 during the session. The Nifty dropped 77.60 points or 0.34 percent to close at 22,811.35. It touched an intraday high of 23,120.90 in early trade before declining to a low of 22,702.85.

Ponmudi R, CEO of Enrich Money, a SEBI-registered online trading and wealth technology firm, said a sustained move above 23,000 would be necessary to improve the Nifty's short-term technical outlook. Failure to reclaim this level could leave the index vulnerable to further losses, with selling pressure likely to persist at higher levels despite intermittent recovery attempts, he said. "On the downside, 22,650–22,600 forms the immediate support zone, followed by 22,300.

A decisive break below 22,600 could intensify selling pressure and expose the index to the 22,300–22,200 range," Ponmudi said. The relative strength index (RSI) is hovering around the neutral 50 mark, indicating a lack of clear directional momentum. The moving average convergence divergence (MACD) continues to show a bullish crossover, although the lighter positive histogram suggests that upward momentum is weakening, he added.

Ajit Mishra, senior vice-president of research at Religare Broking, said selling across key sectors, barring information technology, had pushed the Nifty below its short-term moving average, the 20-day exponential moving average (20-DEMA), weakening the near-term outlook. The 22,200–22,400 range is the next key support zone, while the 23,000–23,300 range is likely to limit gains during any recovery, he said.

Given elevated crude oil prices, weak participation in the broader market and persistent geopolitical uncertainties, Mishra advised investors to remain cautious, focus on selective stock-specific opportunities and maintain a balanced approach with appropriate positions on both sides of the market. Meanwhile, the Rs 30,213-crore Jio Platforms initial public offering (IPO) was subscribed nearly three times on the first day of bidding on Wednesday.

The public issue, the largest in India so far, became the fastest-ever IPO to achieve full subscription, reaching the milestone within 100 minutes of opening.