The Nifty 50 decisively broke below the midline of the Bollinger Bands, placed at 22,755, after opening lower on October 22, and ended the session down half a percent. The index extended its decline for a third consecutive session, shedding nearly 500 points from its recent swing high of 23,175 recorded on October 19.
The broader technical structure remains bearish, with the index trading well below all key moving averages. Rising crude oil prices, which have touched a fresh five-month high, along with weakening momentum indicators, suggest that bears continue to dominate the market.
The formation of a Doji candlestick pattern on the daily chart following the recent decline indicates indecision and the possibility of a trend reversal. However, confirmation in the next trading session will be crucial, particularly given the strong bearish positioning.
A break below the 22,550–22,500 zone could drag the index towards the crucial support band of 22,300–22,200. On the upside, the 22,800–22,900 range is likely to act as immediate resistance, followed by the psychological 23,000 mark, according to market experts.
After opening lower, the Nifty 50 traded in negative territory throughout the session, despite intermittent recovery attempts. The index eventually closed at 22,688, down 124 points, or 0.54 percent.