Technical View: Nifty slips below 23,600 for first time since June 25; support at 23,500

Market Today

The Nifty50 index extended profit booking for a fifth consecutive session on November 13, and slipped below 23,600 for the first time since June 25. Selling across the sectors dragged the index below its 200-DMA (23,530).

Amid weak global cues, disappointing corporate earnings, and rising inflation, the index opened gap down and extended the selling as the day progressed to test the day’s low of 23,509.60 before closing at 23,559, down 324.50 points or 1.36 percent.

Biggest Nifty losers included Hero MotoCorp, Hindalco, Tata Steel, M&M, Eicher Motors, while gainers were NTPC, Britannia Industries, HUL, and Tata Motors.

All the sectoral indices ended in the red with auto, metal, realty, PSU Bank, and media down 2-3 percent, while energy and pharma were down 1 percent each.

The Nifty Midcap 100 index slipped 2.6 percent and the Nifty Smallcap 100 index shed 3 percent.

"The index has slipped sharply due to strong selling by major players. The Nifty has fallen toward its 200DMA, breaching the support level at 23800. Immediate support is now at 23500, and a fall below this level could trigger further correction toward 23300–23200. On the higher end, resistance is positioned at 23750," said Rupak De, Senior Technical Analyst, LKP Securities.

The Bank Nifty index also opened lower and extended selling pulled the index below 50,000 to test day's low 49,904.40, before closing at 50,088.35, down 2 percent.

"Bank Nifty has witnessed a breakdown and is now heading towards 49700 which is the 200 day moving average. On the upside, 50800 – 50900 shall act as an immediate hurdle zone from short term perspective," said Jatin Gedia – Technical Research Analyst at Sharekhan by BNP Paribas.