The Nifty 50 rebounded sharply on October 9, rising 1.3 percent after a day of heavy selling that dragged the index to an 18-month low. Chart patterns on both daily and weekly timeframes signalled a potential trend reversal, but strong follow-through buying is needed to confirm the reversal. Until then, consolidation may continue, with bears retaining firm control over the broader market structure. The index needs to reclaim and sustain levels above 22,800, near the weekly high, to extend its upward move towards 23,000, a crucial hurdle. On the downside, 22,300 is expected to act as immediate support, followed by 22,180, which is a key support level, according to experts.
Here are 15 data points we have collated to help you spot profitable trades:
Resistance based on pivot points: 22,575, 22,642, and 22,751
Support based on pivot points: 22,356, 22,289, and 22,179
Special Formation: The Nifty 50 formed a Bullish Harami candlestick pattern on the daily charts following a sharp downtrend, indicating a potential bullish reversal and signs of easing bearish pressure. However, the reversal needs confirmation through sustained follow-up buying in the coming sessions. The Relative Strength Index (RSI) rose to 36.5 and registered a positive crossover but remained below the 40 mark, indicating that momentum was still weak. The MACD histogram signalled easing bearish momentum, although the MACD line has remained below the signal line since mid-August. The index continued to trade below all key moving averages, with all of them sloping downward. Overall, these technical indicators suggest that bearish momentum may be easing, but the broader trend remains weak.