Mumbai, Mar 19 (IANS): The Nifty has broken down from the rising wedge pattern on the daily chart, suggesting a potential reversal of the uptrend.

Additionally, it has fallen below the critical short-term moving average, indicating weakening momentum, Rupak De, Senior Technical Analyst at LKP Securities, said on Tuesday.

On Tuesday, the Nifty50 closed at 21,817.45, down 238.25 points or 1.08 per cent, while the Sensex crashed 736.38 points or 1.01 per cent to end at 72,012.05.

The Relative Strength Index (RSI) has also shown a bearish crossover, indicating increasing selling pressure. The key levels to watch include resistance at 22,000 and support at 21,800. A drop below 21,700 could lead to further correction in the Nifty index, De said.

Vinod Nair, Head of Research at Geojit Financial Services, said that following the Bank of Japan’s decision to hike interest rates for the first time in 17 years, the Asian peers’ mood turned sour, which caused the Indian market to continue its recent pessimism.

The correction in the domestic market has also been triggered by concerns over premium valuations and the delay in rate cuts by the US Fed due to hotter-than-expected inflation, which is evident from the upward trend in the dollar index.

Investors are exercising caution as they await the upcoming US Fed meeting, seeking indications on the potential timing of a reversal in the rate cycle.

Additionally, the gradual increase in crude oil prices is further dampening the market sentiment, he said.