New Delhi, Sept. 8 -- The Nifty is caught in a tug of war between domestic investors betting on a rebound and foreign portfolio investors (FPIs) positioning for a fall, with the index hovering near a key support level of 23,606.

A decisive break below this level, hit on 24 July, could send the Nifty towards its 8 June low of 23,070 and potentially lower, analysts said.

On Tuesday, the Nifty traded about 0.5% lower at 23,654.

"Right now, the challenge for our market is weathering the fallout from rising crude, induced by reignited hostilities in West Asia. Though US benchmark bond yields have risen above the historic 4.7%, the Fed action to cool off rising yields, thanks to higher crude, should have a salutary impact on them. The third ...