The Nifty 50 index has recently entered a bearish phase, breaking through important support levels, including the 20-week EMA, after experiencing a significant drop on October 22.

The index opened at 24,799 but closed at 24,472, down 309 points or 1.25 percent, which is its first decline below the 100-day EMA since June 4. Analysts are cautioning that if the index falls below the next support level at 24,400, it could potentially decline further to 24,000 or even reach the August low of around 23,900.

Market sentiment is currently weak, with investors increasingly adopting a 'sell on rise' strategy. The fact that the index has been unable to sustain gains after reaching 24,882 indicates persistent selling pressure, especially as it has fallen below the neckline of the Head and Shoulders pattern and the crucial 20-week SMA. It is expected that there will be immediate resistance at 24,700, which will be a critical level to watch for any potential rebound.