The Nifty 50 fell 0.4 percent on October 23, extending its decline through the truncated trading week and losing 2.4 percent over the week. The bears tightened their grip, with the index trading well below all key daily moving averages, bullish momentum weakening and oil prices rising to their highest level since June 2022. Friday’s low of 22,372, from which the index staged a healthy recovery to close at 22,600, is expected to act as immediate support. This is followed by a crucial support level at 22,182, below which selling pressure could intensify. On the upside, the 22,800 level, near Friday’s high and the 20-day exponential moving average (EMA), could act as a key resistance zone. This is followed by 23,000, a crucial hurdle for the index, according to market experts.
Here are 15 data points we have collated to help you spot profitable trades:
Resistance based on pivot points: 22,745, 22,843, and 23,002
Support based on pivot points: 22,428, 22,330, and 22,171
Special Formation: The Nifty 50 formed a sizeable bearish candle with a long lower shadow on the daily chart, indicating continued weakness alongside strong buying interest at lower levels. The index continued to trade below all key moving averages, all of which were trending downward. The RSI slipped to 42.38, moving closer to its signal line. The Moving Average Convergence Divergence (MACD) remained flat for another session but continued to trade above its signal line. Meanwhile, the MACD histogram green bar contracted for the third consecutive session. These technical indicators suggest that the broader trend remains weak, although buying interest at lower levels could provide some near-term support.