The sentiment can change if the Nifty falls below 23,500 and traders may prefer to exit out from the trading long positions, analysts say.

The trends on Gift Nifty also indicate a tepid start for the Indian benchmark index. The Gift Nifty was trading around 23,770 level, a discount of nearly 25 points from the Nifty futures’ previous close.

Indian benchmark indices Nifty and Sensex started the trading session on a weak note on Wednesday, impacted by a sharp decline in IT and metal stocks. However, gains in pharma and energy stocks helped offset the losses to some extent.

Adani Ports, Asian Paints, IndusInd Bank and Reliance Industries gained 1.3-1.6 per cent. Tata Motors Ltd, ICICI Bank Ltd, Power Grid, Tata Steel and UltraTech Cement also gained over 1 per cent each.

The Nifty 50 index would need to breach above the important 200 period MA at 23,900 level and thereafter, to trigger a breakout, says experts.