The current market sentiment is subdued, with the potential for a fresh selloff if certain technical thresholds are breached. Analysts suggest that for the Nifty and Sensex to experience a significant decline, the indices would need to drop below their respective 20-day simple moving averages or fall beneath the 24,900 and 81,400 marks. If these levels are breached, the Nifty could slip to the 24,775-24,725 range, while the Sensex might drop to 81,000-80,800.

On the other hand, for the market to show bullish signals, key levels to watch are 25,000 for the Nifty and 81,800 for the Sensex. If the indices manage to stay above these levels, they could rebound to 25,100-25,150 and 82,150-82,500, respectively. Shrikant Chouhan, Head of Equity Research at Kotak Securities, highlights these thresholds as pivotal for potential recovery.

The Nifty 50 is currently facing resistance at 25,100, but according to Aditya Gaggar, Director at Progressive Share Brokers Pvt, it is forming a Bullish Bat pattern with a Potential Reversal Zone at 24,800, which is acting as strong support. Siddhartha Khemka, Head of Research and Wealth Management at Motilal Oswal Financial Services Ltd, notes that the upcoming European Central Bank policy meeting is keeping investors cautious. He anticipates market consolidation at higher levels before key events and expects rate-sensitive sectors and stock-specific actions to be in focus.