Market benchmarks, the Sensex and the Nifty 50 lost more than 2% each for the week ended 23 October amid rising crude oil prices.
From a technical perspective, the Nifty witnessed a correction following the previous week’s rally of approximately 1,000 points.
According to Jigar S. Patel, Senior Manager of Equity Technical Research at Anand Rathi Share and Stock Brokers, a pullback after such a sharp advance was anticipated. However, Patel underscored an important development has emerged on the hourly chart of the Relative Strength Index (RSI).
"During the recent rally, the hourly RSI crossed the crucial 70 mark for the first time since August 2026. Despite the subsequent correction of approximately 700 points, the indicator has continued to hold above 40, suggesting that underlying momentum remains relatively resilient," Patel said.
"We maintain our buy-on-dips strategy, provided the Nifty holds above 22,200 on a daily closing basis. A decisive close below this level would weaken the bullish outlook," Patel said.