19 hrs ago
Nifty Faces Elevated Volatility as Bears Dominate September Expiry Week
The Nifty stock index has fallen for seven weeks in a row.
It is trading below several important average-price lines, which shows that the market remains weak.
The index recently reached 23,021.
The level near 23,072 is an important floor, or support.
If Nifty closes above 23,163, it could try to recover for a few days.
That recovery could reach about 23,284 to 23,353.
If Nifty falls decisively below 23,070, it could decline toward 22,826.
Because the September monthly expiry is approaching during a shorter trading week, prices may move sharply, so traders are advised to wait for clearer signals.
Nifty fell 205.90 points, or 0.88%, last week to mark seven straight weekly declines.
The index recorded a fresh swing low of 23,021 after slipping below the June low of 23,072.
The 23,072–23,163 range is expected to determine Nifty’s immediate direction.
A close above 23,163 could support a relief rally toward 23,284–23,353 and possibly 23,559.
A decisive close below 23,070 could open further downside toward 22,826 as September expiry keeps volatility elevated.
- Who
- The Nifty index and traders monitoring its technical levels.
- What
- Nifty remains in a weak trend after seven consecutive weekly declines, with traders watching for either a relief rally or further downside.
- Where
- In the Nifty market.
- When
- During the coming shortened trading week, with the September derivatives monthly expiry scheduled for Tuesday.
- Why
- Weak momentum, trading below major moving averages, bearish indicators and monthly-expiry volatility are keeping pressure on the index.
Potential Relief Rally
Bearish Continuation
Immediate direction
Potential Relief Rally
A close above 23,163 could signal a short-term recovery lasting two to three sessions.
Bearish Continuation
Failure to reclaim 23,163 would leave the broader weak trend intact.
Key levels
Potential Relief Rally
Holding the 23,072 support zone and moving above 23,163 could open a move toward 23,284–23,353 and possibly 23,559.
Bearish Continuation
A decisive close below 23,070 could extend the decline toward 22,826 and lower levels.
Trading approach
Potential Relief Rally
Traders may look for confirmation of strength before considering increased exposure.
Bearish Continuation
Weak RSI and bearish MACD readings, expanding weekly Bollinger Bands and the expiry week favor caution and selective positioning.
Key facts
- Weekly decline
- 205.90 points, or 0.88%
- Losing streak
- Seven consecutive weeks
- Recent swing low
- 23,021
- Key support
- 23,072, which Nifty recovered above on a weekly closing basis
- Near-term trigger
- A close above 23,163 could indicate a possible relief rally
- Upside levels
- 23,284, 23,353 and potentially 23,559
- Downside level
- A decisive break below 23,070 could expose 22,826
Sources
Related news
Nifty 50 Falls Below 23,000 as Volatility Surges
Nifty Expiry Faces Pressure; Key Support Levels Draw Focus
Nifty’s Five-Week Slide May Face a Technical Bounce
Nifty Outlook: 23,000 Support Tested as Truncated Week Begins
Nifty Ends Winning Streak as 23,500 Resistance Holds Firm
Nifty 23,000 Support Tested as Crude and Yields Weigh
Vaishali Parekh recommends three intraday stocks amid market selloff
Motilal Oswal Recommends 50:40:10 Equity Allocation Framework
Foreign Investors Increase Selling as Nifty Hits April Low
Nifty Falls Below 23,000 as Bears Target Lower Support
