Technical Analysis

Technical Analysis of 1 stock (with 15-day horizon) [EasyDNNnews:PaidContentStart]

WHAT LIES AHEAD : NEAR-TERM PICTURE

SPOT NIFTY : The Nifty had formed an inside candle on Wednesday; however, the index opened with a gap-down on Thursday, and selling pressure intensified as the session progressed. During the decline, the index breached the low of the long bearish candle formed on September 15 and also broke below the horizontal trendline support placed around the 23,070 level, as highlighted in the chart.

The day’s price action resulted in the formation of a long bearish candle with a gap-down opening, indicating strong selling momentum. The index closed below the swing low of June 8, which was positioned at 23,070, leading to a breakdown of the fourmonth-long horizontal trendline support.

The short-term trend of the Nifty has turned sharply negative. A decisive breakdown below the 23,000 mark could accelerate the decline towards the next support level of 22,719 in the near term. On the upside, any pullback from the current levels is likely to face strong resistance near the September 24 gap zone, placed in the range of 23,282–23,350.

The 14-period daily RSI is currently placed around 31. Interestingly, during the recent recovery phase, the RSI failed to move beyond the 40 level and reversed lower, indicating a shift into a super bearish range. The MACD histogram has also expanded on the downside, suggesting that bearish momentum is strengthening.

NIFTY DERIVATIVES: Nifty futures for the September 29, 2026 expiry were trading around 23,095, while the index declined 238.4 points from last Thursday to this Thursday. The fall was accompanied by a sharp rise in volatility, with India VIX increasing by 0.04 overall. On Thursday alone, VIX jumped 22.6 per cent, while Nifty fell 1.51 per cent, showing stronger Intraday risk aversion. The options data also turned cautious. Call OI increased by 5.32 Cr, while Put OI declined by 1.20 Cr, indicating call addition along with put unwinding. Total Call OI stood at 9.69 Cr, compared with 8.38 Cr Put OI. The Put-Call Ratio (PCR) slipped to 0.86, pointing to a weaker derivatives setup.

At the strike level, fresh Call OI was concentrated around 23,500 and 24,000, with OI additions of nearly 48.32 lakh and 49.39 lakh, respectively. On the Put side, 23,000 Put OI saw unwinding of around 7.57 lakh, while total OI remains concentrated at 23,000 and 22,000. This keeps 23,500–24,000 as an important resistance zone.

The maximum pain level stands at 23,300, while Nifty futures are around 23,100, keeping the index below the current max-pain level. With the PCR at 0.86, Call addition and Put unwinding, derivatives positioning suggests caution around the lower levels. For the next session, 23,000 remains an important level, while a sustained move above 23,300–23,500 would be needed to improve the setup.

STOCK STRATEGY
JSW INFRASTRUCTURE LTD. ................ BUY ................... CMP ₹360.35
BSE Code ...... 543994
Target 1 .... ₹378 
Target 2 .... ₹390 
Stoploss ...₹342 (CLS)

■ Current Observation: JSW Infrastructure Limited (JSWIL) is a part of the JSW Group and is engaged in developing and operating infrastructure assets across ports, shipyards, roads and rail connectivity in India. Through its subsidiaries, the company operates three minor ports at Jaigarh and Dharamtar in Maharashtra, along with eight terminals at major ports. Additionally, JSWIL has expanded its global footprint by acquiring an oil storage terminal at Fujairah Port, strengthening its presence in international Logistics infrastructure.

■ From a technical perspective, the stock has witnessed a breakout from a horizontal trendline that had been intact for over two years. The breakout was accompanied by an improvement in trading volumes, indicating increased participation near the breakout zone.

■ The stock is trading above its key short-term, medium-term and long-term moving averages, with the averages placed in a positive sequence, supporting the prevailing bullish trend. The 14-period daily RSI is trading above the 60 mark, indicating strong momentum. On the weekly timeframe, the RSI has witnessed a range shift into the super bullish zone, further strengthening the positive outlook. The weekly MACD remains in an uptrend and has rebounded after taking support near its nine-period average, confirming the improving momentum.

■ Considering the above technical factors, the stock appears well placed for further upside. Hence, we recommend buying JSW Infrastructure with a stop loss of Rs 342 and upside targets of Rs 378 and Rs 390.

REVIEW OF STOCK STRATEGY
In Issue No. 49 dated September 17, 2026, we recommended GOCL Corporation Limited as the stock was trading near the breakout zone of a nearly three-month-long consolidation rectangle pattern. However, the stock failed to witness follow-up buying momentum after the breakout attempt and subsequently reversed from the resistance zone, leading to a decline towards the stop-loss level. As the stop-loss was triggered, we communicated an exit from the stock to manage risk and protect capital. The trade setup did not sustain the expected momentum, resulting in the closure of the position.

[EasyDNNnews:PaidContentEnd] [EasyDNNnews:UnPaidContentStart]

[EasyDNNnews:UnPaidContentEnd]