Nifty closes in red for 6th time in March: Will market weakness continue or is any strong support visible? Here's what analysts say

Stock market today news: Sensex, Nifty see profit booking in trade.

• Sensex fell 829 points, Nifty dropped 0.95 percent to 23,639.
• Nifty faces key support at 23,500, resistance at 23,850.
• Midcap and smallcap indices declined around 0.5 percent.

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The equity benchmark indices settled sharply lower on Thursday, extending their recent decline amid weak global cues and persistent geopolitical tensions.

The Nifty opened with a gap down, tracking negative sentiment in global markets, and remained volatile through the session. Though the index attempted intermittent recoveries during intraday trade, sustained selling in the latter half dragged it lower and it finally settled around the 23,639 mark, down nearly 0.95 percent.

The Sensex tanked 829.29 points or 1.08 percent to settle at 76,034.42. During the day, it had plunged 992.53 points or 1.29 percent to hit 75,871.18. The Nifty slipped to an intra-day low of 23,556.

So far in March, the Nifty has closed in the red in six out of eight trading sessions, declining more than 8 percent during this period.

Market participants are closely watching whether the current weakness will continue or if strong support levels could help stabilise the index.

Ajit Mishra, SVP – Research at Religare Broking, said the Nifty has breached its previous swing low of 23,700 but managed to hold the support around the 23,500 level.

"Going ahead, a decisive break below this band could trigger the next leg of decline towards the 23,000–23,200 zone. On the upside, any recovery towards the 24,000–24,300 region is likely to face stiff resistance," he said.

Mishra said amid prevailing uncertainty and the negative trend in the market, participants should align their index positions with the broader trend while keeping position sizes in check.

He added that stock-specific opportunities remain on both sides of the market. While sectors such as pharma and energy are holding firm, several others continue to face pressure. Traders should maintain a balanced approach and consider opportunities on both long and short sides.

Sudeep Shah, Head – Technical and Derivatives Research at SBI Securities, said the 23,550–23,500 range will act as a key support zone for the index.

"A sustained move below 23,500 could trigger further downside towards the 23,350 level. On the upside, 23,800–23,850 remains an immediate resistance zone, while a decisive breakout above 23,850 may lead to a pullback rally towards the 23,970–24,000 zone," he said.

Rupak De, Senior Technical Analyst at LKP Securities, said the index slipped below the recent consolidation low, indicating increased weakness amid ongoing concerns around the Strait of Hormuz.

"Though the session remained somewhat volatile, overall selling pressure persisted at higher levels. In the short term, sentiment continues to support a bearish view, with sell-on-rise likely to remain the preferred strategy," he said.

De added that the RSI indicator is in a bearish crossover and is declining further, entering a zone of significant weakness.

On the downside, support is placed at 23,400 and 23,200, while resistance is seen at 23,850, he said.

Meanwhile, on the broader front, midcap and smallcap indices showed relatively better performance, declining around 0.5 percent each.

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