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A long bear candle was formed on the Nifty 50's daily chart, as the index breached its 20 DEMA in today's session, which indicates a downside breakout of the range movement of the last few sessions. The huge opening upside gap of 25th November has been filled and the Nifty closed around the gap support of 23,900 levels.On the downside, the index will find immediate support near 23,800, followed by 23,560, which is the 200-Days exponential moving average (DEMA) support level. The index is still facing strong resistance near 24,350-24,360 levels. As long as the index persists below 24,360, traders should focus on booking profits on the bounce and wait for a fresh breakout, said Hrishikesh Yedve of Asit C. Mehta Investment Interrmediates.In the open interest (OI) data, the highest OI on the call side for 5th November expiry was observed at 24,000 and 24,100 strike prices, while on the put side, the highest OI was at 23,800 strike price followed by 23,900.What should traders do? Here’s what analysts said:Jatin Gedia, SharekhanOn the daily chart, we can observe that the consolidation of the last three trading sessions has broken down and filled the gap area formed on the 25th Nov between 23,950 – 24,150. Crucial retracement levels are placed at 23,935 – 23,807 which is likely to act as a strong support zone and potentially an uptrend resumption zone. Overall, the trend remains positive, and we expect the Nifty to resume its upmove towards 24,400.Rupak De, LKP SecuritiesThe Nifty slipped sharply during the day, falling below the crucial support level of 23,940. The sentiment looks weak, and further weakness seems possible from here. On the daily chart, the index has closed a gap it created recently. In the short term, if the Nifty falls below 23,870, it might continue declining toward 23,500. However, if it sustains above 23,870 and does not make a lower low, it could witness a sharp recovery toward 24,200 and higher.Nagraj Shetti, HDFC SecuritiesAfter the formation of a series of lower tops and bottoms during its down trend over the last two months, the Nifty is now expected to form a new higher bottom in the near term. The sharp upside bounces from the recent lower bottom of 23,263 is signaling a chance of higher bottom formation below 23,900 levels.Tejas Shah, BlinkX & JM FinancialThe Nifty formed a long bearish candle on the daily chart, which is a negative sign. The broader markets outperformed as compared to the mainline indices. The Nifty once again respected the resistance level of 24,350 and fresh selling pressure was witnessed after testing the same. Support for Nifty is now seen at 23,750-800 and 23,500-550. On the higher side, the immediate resistance zone for Nifty is at 24,000-050 levels and the next resistance zone is at 24,300-350 levels. Overall, it would be interesting to see whether follow-up selling occurs today or not.(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)

Headwinds for the Indian markets are yet to peak out, stated Prabhudas Lilladher in its latest India Strategy Report while slashing its base case target for Nifty to 27,381 (27,867 earlier), recommending selective buying on dips for long-term gains.The domestic brokerage values Nifty at a 15-year average PE (19.1x) with Sept 26 EPS of 1,434 and arrives at a 12-month target of 27,381 (27,867 earlier), while in a bull case scenario, it values Nifty at PE of 20.1x and arrives at a bull case target of 28,750 from an earlier 29,260.The benchmark index has been down 6% since October 12 — an apparent impact of Rs 72,000 crore FII selling amid Donald Trump’s victory in the US presidential election, sustained geopolitical uncertainty, strength of USD and softening of gold prices.“Demand conditions remain mixed with a steady uptick in rural demand given low base and normal monsoons. However, rising inflation is affecting demand in urban India (yet to play out fully), more so in metros and big cities, which account for ~35% of the total demand in the economy. All hopes now rest on the demand surge in festival and wedding season,” stated the report.PL Capital expects an interest rate cut only after budget as the spike in food inflation to 10.9% (CPI increase to 6.2%) takes it much above the comfort level of the RBI. The broking firm suggests a stock-specific approach given the tepid demand scenario. PL Capital believes capital goods, infra, EMS, hospitals, pharma, tourism, auto, new energy, e-com, jewellery are good themes to play at current valuations.Also read: HDFC Bank’s m-cap surpasses Rs 14 lakh crore for the first time after stock hits record highGoing ahead, the domestic brokerage foresees three factors that can support growth:Results of the recent polls in Maharashtra, Haryana, UP and Bihar have consolidated the position of the ruling NDA, which will provide much-needed stability and resolve to push for reforms.Trump 2.0 is likely to see some reduction in global wars, lesser geopolitical uncertainty and stable crude prices.Revival expected in government capex as 2Q capex has turned positive and 1H capex is only 37% of FY25 BE.As far its conviction picks are concerned, PL Capital is removing BEML, IndusInd Bank, J.B. Chemicals & Pharmaceuticals and RR Kabel given near-term headwinds in RR Kabel and IndusInd Bank, stake sale uncertainty in JB Chemicals and poor performance from BEML.It has added Lupin, Polycab India, Aster DM Healthcare, DOMS Industries and Triveni Turbine as conviction picks.Meanwhile, the firm is also cutting weightage on Hindustan Unilever, ITC, Nestle India & Reliance Industries, removing L&T Technology Services, Astral, IndusInd Bank from the model portfolio, and adding Polycab.PL is increasing weightage on L&T, Britannia, Titan, ICICI Bank, HDFC Bank, Infosys, LTIMindtree and Ultratech Cement.(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)