The Nifty 50 is showing few signs of a decisive turnaround. Although the index recovered sharply from Friday’s intraday low, it still ended lower, reflecting the market’s continuing struggle to absorb the impact of elevated crude prices, global uncertainty and weak momentum.
The fall in Brent crude below $106 a barrel offered some relief, while buying at lower levels helped limit the losses. But with the Nifty still below key moving averages and technical indicators remaining bearish, investors may have to brace for further volatility. The crucial question now is whether the index can hold the 23,200–23,250 support zone — or slip towards the next major supports near 23,000 and 22,900.
The technical picture remains weak, with the Nifty trading below key moving averages and momentum indicators signalling continued selling pressure.
According to a market analyst, the Nifty has a weak technical structure after slipping below key moving averages.
The immediate support zone is:
23,200–23,250: Key recent swing-low zone
23,000–22,900: Next support if 23,200 breaks decisively
22,400: Stronger support at lower levels
A sustained fall below 23,200 could therefore open the way for further downside.
The index faces immediate resistance around 23,500. This level had earlier acted as support and could now turn into resistance.
The bigger hurdle is:
23,500: Immediate resistance
24,000–24,100: Major resistance zone
24,300–24,350: Next upside target if 24,100 is decisively crossed
A sustained move above 24,100 would improve the technical structure and could signal that the recent correction is losing momentum.
The technical indicators are not yet giving investors much comfort.
The relative strength index (RSI) is around 25, indicating that the index is in oversold territory. However, an oversold reading by itself does not guarantee an immediate rebound. The directional movement index (DMI) also continues to show bearish dominance.
This suggests that the market could remain volatile even if short-term rebounds occur.
Another analyst says investors should avoid aggressive dip-buying at the current levels. A staggered approach may be more appropriate, particularly while the broader market has not shown clear signs of stabilisation.
Another important support zone is 23,000–23,070, which coincides with the previous higher-low structure. Holding this zone could trigger a technical rebound. But a decisive break below it could extend the correction further.
For now, the Nifty remains in a technically fragile zone. The key levels are relatively clear:
23,200–23,250: Immediate support
23,000–23,070: Crucial support zone
22,900: Next downside level
22,400: Stronger lower support
23,500: Immediate resistance
24,000–24,100: Major resistance
24,300–24,350: Potential upside zone above 24,100
For investors, the message is one of caution rather than panic. The index being oversold could encourage short-term buying, but a sustainable recovery is more likely only after the Nifty forms a base and regains important technical levels.
Until then, investors may want to avoid trying to catch the bottom and instead watch how the index behaves around the 23,000–23,250 support zone.
