New Delhi: Indian stock markets have been witnessing a bearish trend as BSE Sensex, on Monday, crashed 1,048.90 points or 1.36 per cent to close at 76,330.01 whereas NSE Nifty index closed at 23,085.95, down 345.55 points or 1.47 per cent.

Experts have indicated how Nifty can plummet to 23000 or even 22500 in the near term with 22500 being a rather good long term support level to prevent the contraction from sinking further. This area is likely to become a range of a new upward movement in Nifty. Such a drop to 22500 is likely to provide an excellent opportunity to buy, thereby generating a good potential in the market this year.

“The immediate support of 23260 has been violated on the downside and the market is now placed to slide further lows. The underlying trend of Nifty continues to be weak. Nifty is on the way down to the next lower support of around 22800-22700 levels. Any pullback up to 23350 could be a sell-on-rise opportunity,” Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities said.

As Nifty breached its bottom of 23,263 on a daily logarithmic scale, there are chances of further dip – Jatin Gedia, Technical Research Analyst at Mirae Asset Sharekhan remarked.

Jatin claims that the daily momentum indicator suggests a negative crossover, signaling an opportunity to sell. Whist stating that Nifty has a target of 22670, he underlines that this number is a part of the 38.2% Fibonacci retracement level of 22679 achieved in march 2003. In his regards, the swing low of 23260-23300 would act as an immediate obstacle which is the principle of reversing roles.

According to Rupak De, Senior Technical Analyst at LKP Securities, Bears reign supreme as Nifty breeches important levels like the index surpassing the lower end of the previous Day chart indicating an escalated bearish trend. It does remain however, over the key 23000 level. If the Nifty manages to stay over this mark on the coming days there may be a bounce back, but if it dips below this key level there is a chance of an even lower dip.