The Nifty ended lower on Friday, dimming hopes of an earlier rate cut in the US. A dip below the key 22,300 support level will fuel further selling, according to Vaishali Parekh, vice president-technical research at Prabhudas Lilladher Pvt. "Once we saw Nifty breaking 22,600 level, we advised our clients to exit as we are looking at a downside of 22,300, which is a prominent support level. If it breaks, we may see further selling," Parekh told NDTV Profit.

For the Bank Nifty, 48,400 acts as a crucial support. "It is still holding on well compared to Nifty, but I would have a cautious view hereon," she said.

India's benchmark stock indices ended lower on Friday as upbeat US economic data pushed back hope of an earlier rate hike, triggering profit-booking by market participants. The NSE Nifty 50 closed 234.40 points, or 1.03%, lower at 22,519.40, and the BSE S&P Sensex declined 793.25 points, or 1.06%, to end at 74,244.90.

The decline in markets is a result of divergence between higher interest rate scenario in the US and expectation of cuts by the European Central Bank, which will put pressure on the rupee and thereby Indian importers, said Chakri Lokapriya, managing partner at RSB LLP.

Also adding to negative sentiment is an amendment in the double taxation avoidance agreement between India and Mauritius, he said. The tweaked deal makes way for closer scrutiny of investments coming via Mauritius.

If interest rate cuts are pushed back globally, outlook for metal companies will be hurt. "Valuations are low for metal companies, demand is picking up and these companies are comfortably placed," Lokapriya said.

"Earnings are growing strong for new-age companies, industrials, infrastructure, power, railways, defence and chemicals are benefitting. They provide support to fundamental earnings projections for the year," he said.

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