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Trading Plan: Can Nifty 50, Bank Nifty rebound sharply after a day of heavy selling?

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⚡ Instant Key Takeaways (TL;DR)
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Core Development: Trading Plan: Can Nifty 50, Bank Nifty rebound sharply after a day of heavy selling?
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Market & Financial Impact: The Nifty 50 may face resistance in the 22,350-22,500 zone, followed by the 22,600-22,800 range. On the downside, Thursday's low is expected to provide immediate support. A break below this level could open the door for a further decline towards 22,000.
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Actionable Insight: 🔴 Bearish Risk: Regulatory scrutiny, profit decline, or sell-off risk may create near-term volatility.

On October 8, the Nifty 50 fell 371 points, or 1.64 percent, to close at 22,232, while the Bank Nifty plunged 540.5 points, or 0.98 percent, to end at 54,515. Market breadth remained firmly bearish, with about 2,813 shares declining against 491 shares that advanced on the NSE.

Nifty found support near 22,217 on October 1. Some positive traction was seen at the start of this week, but the latest session witnessed strong selling pressure with a decline of over 400 points intraday. The overall setup remains bearish, with lower lows and lower highs continuing since the start of the August series. Nifty marked a new 52-week low around 22,179.

Price is trading well below key moving averages. India VIX rose sharply (around 10 percent) to 15.27.

Immediate support lies in the 22,180–22,000 zone. RSI is not making fresh lower lows, suggesting temporary support could emerge near 22,000 ±50points. A decisive break down below this zone could open further downside toward 21,700 and could extends towards 21,560. On the upside, resistance is clustered at 22,500, followed by a stronger hurdle at 22,800. As long as these levels remain unbroken, the bias stays bearish.

Strategy: Sell on rises as long as Nifty stays below 22,800. Fresh shorts in Nifty Futures can be initiated on a sustained break below 22,000, targeting 21,700 and 21,560.

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Official Publisher Attribution: This report is aggregated from Moneycontrol. ZeroLive provides live aggregation, automated sentiment synthesis, and exchange disclosure monitoring for retail market participants.
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