The Nifty 50 reversed more than half of the previous day's gains and fell 0.7% on October 12, marking a weak start to the week. The index tested the 10-day exponential moving average (EMA) at 22,610 but failed to sustain its gains amid persistent selling pressure. Going forward, this level is likely to act as immediate resistance, followed by 22,800 as a critical hurdle. A decisive move above these levels could pave the way for a breakout towards 22,900–23,000. On the downside, the support zone is placed at 22,200–22,180, below which selling pressure could intensify, according to market experts.
Brent crude futures, the international benchmark for oil prices, remained elevated, trading in the $105–106 per barrel range. Meanwhile, the US 10-year Treasury yield stayed above the 5.2% mark. The Indian rupee, however, strengthened by 1.05 percent in a single session to close at 95.76 against the US dollar after opening with a gap-up.
The Nifty 50 opened on a positive note and climbed to an intraday high of 22,651 but failed to sustain its gains for long, with the trend subsequently shifting in favour of the bears. The index extended its losses as the session progressed, falling 157 points, or 0.7%, to close at 22,363.
On the daily chart, the index formed a long red candle with small shadows on either side, indicating persistent weakness. Notably, it failed to attract follow-through buying after forming a Bullish Harami candlestick pattern in the previous session, suggesting that bears continue to dominate the market.
Technically, the Nifty 50 continues to trade below all its key short- and long-term moving averages, which are trending downwards and reflect a weak market structure. Additionally, the daily Relative Strength Index (RSI) remains in the super-bearish zone under the RSI range-shift framework, highlighting the absence of meaningful bullish momentum. The Moving Average Convergence Divergence (MACD) indicator has remained in a bearish crossover for nearly two months, although the histogram indicated a further reduction in bearish momentum during Monday's session.