Nifty, on Monday, formed a reasonable negative candle on the daily chart with an upper shadow. Technically, this market action indicates an attempt for a downside breakout of the range movement. This is not a good sign and signals more weakness ahead.The crucial support of the 200-day EMA has been violated again at the 23,700 level amid choppy movement and the opening downside gap of 19th December remains unfilled after seven sessions of its formation. The unfilled opening down gap could be considered a bearish run-away gap, which is normally formed in the middle of a downtrend. Hence, more decline could be in store, said Nagaraj Shetti of HDFC Securities.The short-term trend of Nifty is down and the market is expected to slide down to 23,500-23,400 levels in the short term. Immediate resistance is at 23,800 levels, he added.According to the open interest (OI) data, the highest OI on the call side was observed at 24,000 and 23,800 strike prices, while on the put side, the highest OI was at 23,500 strike price followed by 23,600.What should traders do? Here’s what analysts said:Hardik Matalia, Choice BrokingOn the daily chart, the Nifty index formed a significant bearish candle with a long upper wick, signalling strong selling pressure at higher levels. The index ended the session below the 23,650 mark after experiencing considerable intraday volatility. On the downside, the 23,600 level serves as a critical support. A breach of this level could lead the index toward the 23,500–23,200 zone. Conversely, on the upside, 23,800 is a key resistance, with the next major barrier at 24,000. A sustained close above these levels is essential to negate the current bearish momentum. Given the heightened volatility, traders are advised to remain cautious, use strict stop-loss measures, and avoid holding long positions overnight to manage risks effectively.Rupak De, LKP SecuritiesThe Nifty remained volatile during the session, oscillating between 23,600 and 23,900. On the daily chart, the index has slipped below its recent consolidation. Additionally, it continues to trade below the 200-DMA, indicating weak sentiment. The overall outlook remains negative for the short term, with potential downside risks. On the lower end, support is seen at 23,400, while resistance is expected around 23,870 in the near term.Nandish Shah, HDFC SecuritiesThe broader range for the Nifty has been 23,500-24,000 for the last 5 trading sessions and either side breakout would decide the further trend. However, the positional trend remains down as the Nifty is currently placed below key moving averages.(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)