The Nifty index has shown a significant decline, dropping 2.55% last week and closing below the critical support level of 23,800 at 23,533. This indicates a weakening price structure, as the index has failed to close above the previous week's high for seven consecutive weeks and remains below the 20-week Exponential Moving Average.

There has been persistent selling at higher levels, reflecting increasing bearish pressure. Currently, the Nifty is near the pivotal 200-day Exponential Moving Average at 23,540, approaching a crucial demand zone between 23,300 and 23,200, which has historically provided reliable support. Traders anticipate stability in this range, as there is strong Put writing. However, the index is still trading below its 10- and 20-day EMAs.

The Relative Strength Index has struggled to maintain levels above 50 since early October, indicating limited buying interest and confirming resistance at higher levels. If the Nifty falls below 23,480, selling pressure may intensify, and a sell-on-rise strategy is likely to dominate market sentiment.