Nifty 50 ends three-day decline; analysts eye rebound signals
India's benchmark Nifty 50 index gained 46.30 points to close at 23,477.80 on Thursday, with buying interest emerging at lower levels after three consecutive losing sessions.
Nifty 50 Rebounds After Declines
India's Nifty 50 index closed higher on Thursday, halting a three-session losing streak. The benchmark index advanced 46.30 points, ending the trading day at 23,477.80. This recovery was supported by increased buying during the closing auction session, despite earlier volatility that prevented the index from sustaining higher levels throughout the day.
The market's performance created a green candle with a long lower shadow on daily charts, suggesting that buyers entered the market at reduced prices.
Technical Signals Point to Potential Rebound
Despite Thursday's bounce, the Nifty 50 continues to exhibit a pattern of lower highs and lower lows on its daily timeframe, indicating persistent short-term pressure.
However, analysts tracking the market observe that the formation of a hammer-like candle following a significant decline, combined with the index moving into oversold territory, suggests a possibility of a short-term rally. The 14-period Relative Strength Index (RSI) remaining below 30 reinforces these oversold conditions, hinting at a potential relief rally.
Key Resistance Levels for Sustained Recovery
For the Nifty's recovery to gain further strength, it must maintain levels above its immediate resistance point of 23,495. The next critical resistance zone for the index lies between 23,572 and 23,623, which corresponds to a downside gap formed on 9 September. A decisive move beyond this gap could improve overall market sentiment and trigger additional short covering.
Furthermore, the 8-day Exponential Moving Average (EMA), currently positioned around 23,720, represents another significant hurdle.
JSW Infrastructure Shows Breakout Potential
Beyond the broader index, specific stocks are showing technical patterns. JSW Infrastructure, for instance, experienced a nearly 15% rally from its July low to its August high this year. Following this ascent, the stock entered a corrective phase, finding support near the 61.8% Fibonacci retracement level.
The subsequent consolidation has formed a triangular pattern, with the stock now nearing a potential breakout. A sustained move above ₹345 could lead to further upside, targeting ₹358–369.
This article is journalism, not investment advice; consult a licensed professional before making financial decisions. Market data is indicative, may be delayed, and should be verified with your broker or exchange before use.
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