NIFTY50 drops below 24,000, will it bounce back? here is what charts show

Indian benchmark indices extended their fall on Wednesday amid weak global market sentiment and elevated crude oil prices. The SENSEX dropped 374 points or 0.49% on Wednesday ahead of its weekly expiry on Thursday. Meanwhile, the NIFTY50 closed below the pivotal threshold and support of 24,000, after almost a month.

The benchmark index closed below 24,000 at 23,914 levels, for the first time since 26, July 2026. The index also closed below a crucial trendline support from 02 April, 2026. The closing below denotes intensified weakness in the index as the heavyweight stocks like HDFC Bank, ICICI Bank, Infosys, and TCS continued to pull the index lower.

Moreover, the daily chart also showed a possibility of a negative crossover in the NIFTY50, where the 20 EMA will cross the 50 EMA from above. A similar setup was last visible on 20 January 2026, when the index closed 353 points or 1.3% lower.

Going forward, the 23,590-600 level remains the near-term support, which is also the next swing low level touched on 24 July 2026. On the flipside, the 24,200 level remains a crucial near-term resistance.

However, historical data also suggests that after lingering near the next support levels, NIFTY50 has bounced back to the previous threshold in a period of less than a month, creating a bear trap scenario.

In the current scenario, where external factors are weighing heavily on the sentiment of Indian investors, any positive news from the Middle East and a subsequent fall in crude oil prices could boost the positive momentum in the Indian markets. Additionally, renewed FII buying and heavy short positions by FIIs at 90% in the derivative market could also trigger a short-covering rally, amid the reversal in global economic factors.