If the Nifty 50 breaks 23,400 (50-week EMA), the index may extend its downtrend toward 23,250 (last week’s low). However, sustaining above 23,400 may drive the index back toward 23,800, experts said.

Since hitting 23,800, the Nifty 50 has remained under the control of bears for three consecutive days, falling below the 50-day and 200-day EMAs, with the continuation of a lower highs-lower lows formation. If the Nifty 50 breaks 23,400 (50-week EMA), the index may extend its downtrend toward 23,250 (last week’s low). However, sustaining above 23,400 may drive the index back toward 23,800. If the Bank Nifty breaks 50,000, the selling pressure could drag the index toward 49,600-49,500, the key support zone. Below this, bears may gain control.

February 7, the Nifty 50 closed at 23,560, down 43 points, and the Bank Nifty declined 223 points to 50,159, with market breadth favouring bears. A total of 1,681 shares declined, against 876 shares that gained on the NSE.