Benchmark indices Sensex and Nifty declined more than a per cent to close at three-month lows on Friday dragged by sell-off in banking, financials. and Adani Group stocks. Sensex tanked 874 points to settle at 59,330.9 whereas Nifty fell 287 points to end at 17,604. In the broader market, the BSE smallcap gauge fell 1.89% and midcap index fell by 1.29%.

"Technically, any pullback rally from here could encounter strong overhead resistance of around 17750 levels, as per the concept of change in polarity and that could be a sell on rise opportunity for the coming sessions. Weakness is likely to continue for the next 1-2 sessions and the important economic event of Union Budget 2023 on 1st Feb is expected to show fresh direction for the Nifty ahead," said Nagaraj Shetti, Technical Research Analyst, HDFC Securities. 

“The index has fallen below recent consolidation on the daily chart, leading to a big sell off from the foreign institutions. However, the 50-week exponential moving average, located at 17400, is likely to provide immediate support. A further correction may be seen if the index falls below 17400. On the other hand, resistance is visible at 17850. As long as the Nifty remains below 17850, traders may favour a sell on rise strategy," said Rupak De, Senior Technical Analyst at LKP Securities.