Trade Setup for March 12: Nifty's recent low of 23,697 crucial after another day of sell-off

Bears retained control of the market on Wednesday, with selling pressure intensifying near the 24,300 mark as expected. The weakness deepened through the session, dragging the index lower and briefly pushing it below the 24,000 level.

Rising crude oil prices and concerns over tightening natural gas supplies rattled investor sentiment, weighing on the broader market.

The index opened on a flat note and extended losses through today's session, with minor intraday pullbacks repeatedly met with fresh selling.

On the domestic front, gas-related stocks remained in focus after the government prioritised LPG supplies and encouraged higher domestic output amid supply concerns linked to tensions between the United States and Iran.

Meanwhile, LPG prices were raised by more than ₹60 for a 14.2 kilogram non-subsidised household cylinder across major cities. The increase came as Brent crude surged to a four-year high of nearly $92.8 per barrel amid disruptions to global energy supplies caused by escalating tensions in West Asia.

Separately, the Union Cabinet approved an extension of the Jal Jeevan Mission 2.0 with an outlay of ₹8.69 lakh crore. The programme is expected to benefit companies in capital goods, pipes and fittings, engineering procurement and construction, and infrastructure.

Large-scale investments in water pipelines, pumps, treatment plants and rural distribution networks are likely to support order inflows and improve revenue visibility for firms involved in water infrastructure and project execution.

According to Nagaraj Shetti of HDFC Securities, the near-term trend for the Nifty appears to have turned negative after the recent rebound.

He expects the index to slip below the recent swing low of 23,697 in the short term, with immediate resistance placed around 24,050.

Meanwhile, Rupak De of LKP Securities said the weak technical structure has continued to deteriorate, with the gap between the 50-day moving average and the 200-day moving average narrowing.

This raises the risk of a death cross, a technical pattern that occurs when the 50-day moving average falls below the 200-day moving average and often signals further downside, he said.

De placed support levels at 23,700 and 23,300, while resistance on the upside stands at 24,100.

Sudeep Shah of SBI Securities said the immediate support zone for the Nifty is between 23,750 and 23,700. A sustained break below this range could push the index towards 23,500 and subsequently 23,300 in the near term.

Note To Readers

Disclaimer: The views and investment tips expressed by investment experts on CNBCTV18.com are their own and not that of the website or its management. CNBCTV18.com advises users to check with certified experts before taking any investment decisions.