NIFTY Index Chart Analysis

The Indian equity market faced pressure during the last fortnight as rising crude oil prices and higher global bond yields weighed on investor sentiment. Crude oil prices remained above the USD 100 per barrel mark, while borrowing costs in the U.S. climbed to their highest levels since the 2008 financial crisis, with the 10 year U.S. Treasury yield moving above 5 per cent. The escalation in geopolitical tensions pushed oil prices higher, increasing concerns over inflation and keeping pressure on global central Banks to maintain a tighter monetary policy stance. Markets are closely tracking upcoming policy decisions, with expectations of further rate action from major central banks.[EasyDNNnews:PaidContentStart]

Since the August 3 high, the Nifty has corrected nearly 1,655 points, translating into a decline of around 6.68 per cent. During this decline, the index breached several important support levels. It first slipped below the rising trendline support connecting the April, June and July swing lows, followed by a breakdown from the broader channel marked by the yellow dashed trendline. The breakdown was accompanied by a large bearish candle that closed near the day’s low, indicating strong selling pressure.

This decisive move has erased the support witnessed during Friday’s session and has pushed the index closer to the lower end of the five month consolidation range.

The Nifty is currently trading below its key short term, medium term and long term moving averages, highlighting weakness in the broader structure. On the weekly chart, the index extended its losing streak for the fifth consecutive week, matching its longest weekly decline of CY2026. The Nifty had previously recorded a similar five week losing streak between February and March. The index is now trading below its 20 week, 50 week and 100 week moving averages, reflecting sustained pressure across multiple timeframes.

Going ahead, the 23,070 level will remain a crucial support zone for the index. This level represents the lower boundary of the broader consolidation range formed over the past five months. A sustained close below this zone could further weaken the market structure and open the possibility of a deeper correction. On the upside, immediate resistance is placed in the 23,267 to 23,380 range. The index needs to move above and sustain this zone for signs of short term stabilisation to emerge.

Above this, the 23,572 to 23,623 zone remains a key hurdle. This area coincides with the downside gap formed on September 9 and may continue to attract selling pressure during any recovery attempt. The 14 period daily RSI has declined to 22.23, indicating that the index has entered deeply oversold territory. While oversold readings from momentum indicators such as RSI and weekly Stochastics suggest the possibility of a short term bounce, the continued rise in volatility indicates that selling pressure remains dominant.

At present, the overall market structure remains weak, with the Nifty trading below major moving averages and momentum indicators favouring further caution. Any recovery attempt will need to clear the immediate resistance levels before the short term trend shows meaningful improvement.

STOCK RECOMMENDATIONS

HYUNDAI MOTOR INDIA LTD. ................ BUY ......................... CMP ₹2,140.00
BSE Code : 544274
Target 1 .... ₹2,260 
Target 2 ..... ₹2,350 
Stoploss....₹2,110 (CLS)

Hyundai Motor India Ltd. (HMIL) is one of the leading players in the Indian passenger vehicle market and serves as an important manufacturing and export base for its parent company, Hyundai Motor Company (HMC), South Korea. The company has established a strong presence in India, particularly in the Sport Utility Vehicle (SUV) segment, which contributes significantly to its domestic sales volumes. HMIL operates advanced manufacturing facilities along with a dedicated research and development centre, supporting its focus on multiple powertrain technologies, including petrol, diesel, CNG and electric vehicles (EVs).

From a technical perspective, the stock witnessed a breakout above a one month long horizontal resistance zone with a gap up opening, after which it moved higher to test the ₹2,281 level. Following this rally, the stock entered a corrective phase. The correction found support near the 50 per cent retracement level of the previous move, calculated from the July 24 low to the August 27 high. Historically, the rising 50 DMA has acted as a reliable support zone for the stock, and the current price action indicates that the stock is trading close to this key moving average, offering a potential entry opportunity.

Considering the technical setup and support levels, we recommend buying the stock with a stop loss of ₹2,110. The upside targets are ₹2,260, followed by ₹2,350.

Tata TECHNOLOGIES LTD. ......................... BUY ...................... CMP ₹758.20
BSE Code : 544028
Target 1 ...... ₹807 
Target 2 ..... ₹840 
Stoploss.....₹736 (CLS)

Tata Technologies is a global product engineering and digital services company that assists manufacturers in designing, developing and delivering next generation products. The company works with global original equipment manufacturers (OEMs) and enterprises across sectors such as automotive, Aerospace, industrial machinery and other manufacturing industries.

On the technical front, the stock broke out of an ascending triangle pattern in August, supported by strong volumes, and quickly achieved the measured target of the pattern. After the breakout, the stock witnessed a pullback towards the breakout zone, which is a common feature after a sharp upmove. The correction has taken place on relatively lower volumes, indicating that the selling pressure remains limited and the current decline appears to be a normal retracement rather than a change in trend.

On the daily chart, the stock is trading near the lower Bollinger Band, while on the weekly timeframe it is taking support around its 20 week moving average. These technical factors suggest that the stock is approaching an important support zone. Considering the above factors, we recommend buying the stock with a stop loss of ₹736. The target range for the stock is ₹807 to ₹840.

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