The stock market fell sharply on Monday and investors sold under pressure. Panic selling was seen among investors due to the detection of cases related to HMPV virus in India. During this period, the benchmark index Nifty broke all its support levels and closed at the level of 23616 after falling by 388 points.

Due to this sharp decline, the Nifty 50 index closed below the 200-DEMA on the daily chart. This means that there are signs of further weakness in Nifty. The Relative Strength Index (RSI) is currently at 40.7, which means that Nifty is trending downwards and may decline. In contrast, the Stochastic RSI is showing a bullish crossover, which indicates a possible short-term recovery. This divergence indicates caution, as there is no clear direction in the market.

However, after Monday's decline, Nifty has created many strong resistance levels for itself at the upper level, where going there may lead to further selling in Nifty. Nifty may go on a sell-on rise from here.

Nifty faced strong selling pressure throughout the session, struggling to stay above the imagined resistance level of 24,000. It closed below 23700 and crossed the 200-day exponential moving average (EMA), which indicates a bearish trend.

If the index fails to sustain above the current levels, further correction may lead to the next support levels at 23270 and 23000. However, Mandar Bhojane of Choice Broking said that a decisive breakout above 24000 is important to revive the bullish momentum.

According to open interest (OI) data, the highest OI on the call side was seen at 24000 and 24200 strike prices, while on the put side the highest OI was at 23,600 strike price followed by 23300.

Jatin Gedia of Sharekhan said that Nifty opened in light green. However, it witnessed selling pressure and closed 389 points down. On the daily chart, we can see that the index could not hold the 200-day exponential moving average (23,700) and closed below it again.

Inability to sustain and sustain above it indicates weakness. We expect Nifty to remain in consolidation within the range of 23,500 - 24,200 from a short perspective.

Satish Chandra Aluri of Lemon Markets Desk said that the markets have returned to the recent sell-off trend, which reflects cautious investor sentiment, as the bulls were unable to sustain. Any sustainable correction in the market depends on positive third quarter results and development measures from the budget.

Nifty50 broke key support levels and if the selling continues it could even touch recent lows around 23,200-23,300, on the upside, Nifty50 may face resistance around 24,000.