New Delhi, Jan 2 (IANS): A bearish candle has emerged on the daily Nifty chart, indicating a potential bearish trend in the near future.

The sentiment is expected to stay bearish as long as it remains below 21,750, said Rupak De, Senior Technical Analyst at LKP Securities.

Any upward movement towards 21,750 could encounter selling pressure. However, a clear breakout above 21,750 could shift sentiment in favour of the bulls. Support is established at 21,500 on the lower end, he said.

Vinod Nair, Head of Research at Geojit Financial Services, said the market extended Monday's last hour’s sell-off, taking negative cues from Asian peers due to weak Chinese manufacturing data and mounting tensions in the Red Sea, which has the potential to disrupt global trade and crude supplies.

Ahead of the impending results season, investors are adopting a profit booking strategy. Auto stocks declined on below-expected volume numbers, while pharma stocks were the standout due to catch-up in the US economy, he said.