The Nifty 50 remained under bears' control for most of Friday’s session, ending October 23 down 0.4 percent. The decline took its weekly losses to 2.36 percent, with selling pressure persisting throughout the four trading sessions of the week. Weakening bullish momentum, the index’s sustained position below short-term moving averages, a rise in India VIX to the 17 mark, and surging crude oil prices towards $115 a barrel strengthened the bears' case.
The possibility of the Nifty 50 extending its decline towards the 22,400–22,350 zone, which coincides with the 200-week EMA, followed by 22,180, the current month’s low, cannot be ruled out in the upcoming monthly F&O expiry week. A decisive break below 22,180 could intensify selling pressure. On the upside, however, any recovery is likely to encounter selling pressure, with 23,200 emerging as a key resistance level. A sustained move above this level could improve the prospects of a renewed uptrend. In the immediate term, the 22,800–22,850 zone, which coincides with the 20-day EMA, is likely to act as resistance, according to market experts.
The Nifty 50 opened higher and climbed to an intraday high of 22,787 but failed to sustain its initial gains. The index extended its decline as the session progressed, hitting an intraday low of 22,372 in the second half before recovering partially to close at 22,600, down 88 points, or 0.39 percent, on Friday.
On the daily chart, the index formed a sizeable bearish candle with a long lower shadow following a Doji in the previous session. This indicates continued selling pressure, although buying interest emerged at lower levels.
Technically, the index remained below all key moving averages, which were trending downwards. The Relative Strength Index (RSI) fell to 42.38, moving closer to its signal line. Meanwhile, the Moving Average Convergence Divergence (MACD) edged lower but remained above its signal line, while the histogram continued to contract for the third consecutive session. Together, these signals point to weakening momentum and a bearish near-term bias, although the MACD has yet to confirm a fresh bearish crossover.