Jatin Gedia decodes what next for Nifty if it breaks below 23,000-mark

Nifty 50's crucial support is at the 23,000 - 23,100 zone. A breach below this could lead to a continuation of the downtrend towards 22,600 - 22,500 zone.

Disclaimer: This article is written by JatinGedia, VP, technical research at Teji Mandi Investment Technologies. Views expressed are his own. Readers' discretion is advised.

Nifty has been consolidating around the 23,200 mark, which coincides with the lower end of the trading range of the previous four months. On the downside, the crucial support is at the 23,000 - 23,100 zone. A breach below this could lead to a continuation of the downtrend towards 22,600 - 22,500 zone, which coincides with the rising support trend line drawn from the 21,743, connecting the 22,182 swing low.

The current downtrend could reverse if Nifty surpasses 23,600. A move beyond 23,600 could lead to a rally towards the 23,956 - 24,000 zone, which coincides with the 50 per cent Fibonacci retracement level of the entire decline from 24,774 to 23,100

Bank Nifty consolidated within the range of the previous trading session. The overall trend for Bank Nifty remains negative and could only reverse above 57,000. For the upcoming session, a break below 55,800 could lead to a decline towards 55,500 - 55,400 zone, while a breakout above 57000 could reverse the current downtrend.