2 days ago
Nifty 50 Faces Weak Technical Setup as Key Levels Emerge
India’s main stock index, the Nifty 50, had a difficult day but recovered some of its early losses.
It still finished lower at 23,398.
The Sensex, another important market index, also ended lower.
Falling oil prices helped because expensive oil can put pressure on oil-dependent parts of the economy.
Some investors also bought shares after recent declines made prices look more attractive.
Technical analysts say the Nifty is below several important average-price lines, which suggests weakness.
One important support area is between 23,000 and 23,250.
If that level breaks, the index could fall further, while moving above 24,100 could improve its outlook.
Analysts advised investors not to buy aggressively until the market shows signs of stabilising.
The Nifty 50 fell 0.34%, or 80 points, to close at 23,398 on Friday, September 11.
The Sensex declined 0.16%, or 148 points, to finish at 74,754.
Lower global crude prices and buying at lower levels helped domestic equities recover from their intraday lows.
Brent crude fell 2.3% to $105.14 per barrel, while West Texas Intermediate declined 2% to $100.46.
Analysts identified support between 23,000 and 23,250 and major resistance around 24,000–24,100.
- Who
- The Nifty 50 and Sensex, with views from technical analysts Jigar S. Patel and Hitesh Tailor.
- What
- Indian benchmark equity indices declined but recovered much of their intraday losses, while analysts assessed the Nifty 50’s next key levels.
- Where
- India’s domestic equity market; global crude markets also influenced sentiment.
- When
- Friday, September 11.
- Why
- The Nifty remained under technical selling pressure, while falling crude prices and lower-level buying helped limit the decline.
Cautious Downside View
Potential Stabilisation View
Key support levels
Cautious Downside View
Jigar S. Patel identified 23,200–23,250 as immediate support, with further supports at 23,000–22,900 and 22,400 if the first zone breaks decisively.
Potential Stabilisation View
Hitesh Tailor identified 23,000–23,070 as the important support zone and said holding it could trigger a technical rebound.
Trading approach
Cautious Downside View
The weak structure, RSI near 25 and bearish DMI suggest that caution should continue, with 24,100 remaining the major resistance level.
Potential Stabilisation View
Aggressive dip-buying should be avoided, but a staggered approach may be considered after the broader market stabilises and the Nifty forms a base and regains key technical levels.
Key facts
- Nifty 50 close
- 23,398, down 0.34% or 80 points
- Sensex close
- 74,754, down 0.16% or 148 points
- Brent crude
- $105.14 per barrel, down 2.3%
- WTI crude
- $100.46 per barrel, down 2%
- Immediate Nifty support
- 23,200–23,250, according to Jigar S. Patel
- Alternative key support
- 23,000–23,070, according to Hitesh Tailor
- Major resistance
- 24,000–24,100
Quotes
Jigar S. Patel
Senior Manager of Technical Research at Anand Rathi Share and Stock Brokers
“On the upside, immediate resistance is seen at 23,500, where the index has previously found support and may now face selling pressure.”
livemint.com
“From a technical perspective, Nifty is currently trading below all its key EMAs, keeping the short-term structure weak.”
livemint.com
Sources
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