Trade Setup for September 23: Nifty weakness a buy-on-dips opportunity for short term, experts say

Indian equities extended their weakness for a second straight session, with the Nifty briefly slipping below 25,300. A late rebound helped it trim some losses, but the index still closed just above 25,200.

The Nifty opened with a gap-down of 89 points and quickly recovered to fill the opening gap.

However, the rebound could not sustain, and the index slipped again through the day before settling 124 points lower at 25,202. From the recent swing high of 25,448, the Nifty has corrected nearly 300 points.

Among the Nifty constituents, Adani Enterprises, Eicher Motors, and Bajaj Finance were top gainers. IT heavyweights Tech Mahindra, TCS, and Infosys led the losers, dragging the index lower.

The broader markets ended their 11-session winning streak, with the Nifty Midcap 100 falling 0.67% and the Nifty Smallcap 100 shedding 1.17%.

Sectorally, most indices closed in the red. Pharma declined 1.4%, while IT was the biggest drag, tumbling over 3% after the US sharply raised the one-time H-1B visa fee to $100,000. The Nifty IT index slid more than 3%, with all its constituents ending in the red.

Looking ahead, focus will shift to Commerce Minister Piyush Goyal's visit to the US on September 22 for trade talks, the first since the Trump administration imposed 50% tariffs. After the recent run-up, equities may consolidate as investors track developments on this front.

Nagaraj Shetti of HDFC Securities said the weakness could be a buy-on-dips opportunity, with support around 25,000 and resistance near 25,450.

Nilesh Jain of Centrum Broking said that 25,000 remains a crucial psychological support. A move above 25,400 would be key to triggering the next leg of the uptrend.

LKP Securities' Rupak De said the pullback of the last two sessions is normal after a 1,000-point rally and healthy for a sustained uptrend. Short-term support is at 25,050, with resistance at 25,250.

Nandish Shah of HDFC Securities said that Nifty tested its previous swing-high support of 25,153 and closed below the 5-DEMA for the first time since September 2. A decisive break below 25,150 could open the door for a decline towards 25,040-24,980.