Rajesh Palviya, Head of Research, Axis Direct.
The Nifty dropped 436 points yesterday to settle at 23,379.6, marking its fourth consecutive daily loss and a Rs 12-lakh-crore wipeout in investor wealth. Technically, the session’s candle was long, bearish, and ended near the lows – showing weak behaviour that decisively broke the 23,800-24,400 consolidation band. Wall Street finished mixed overnight after a hotter-than-expected 3.8% April CPI print, which pushed the Nasdaq 0.7% lower, while the Dow posted small gains; rate-cut bets have diminished. Brent surged near $107 on Iran supply fears, gold held steady around $4,700. Asian futures are soft this morning, and GIFT Nifty indicates a flat open. The battle lines are clear: 23,300 is immediate support, with 23,100-23,000 as the next zone, while bulls need a daily close above 23,500 for any recovery. Unless and until 23,800 is reclaimed, the bias remains bearish. The broader market saw substantial selling pressure, and one can adopt a sell-on-rise strategy until the Nifty surpasses the 23500-23600 level.