Nifty50 Bounces From 23,400 With a Hammer Candle — Is a Recovery Brewing?

NIFTY 50 Finds Support Near 23,400 With a Hammer Formation

Nifty had a bit of a comeback on Thursday, opening at 23,446.60. It slipped down to an Intraday low of 23,380.10, but buyers stepped in right near the 23,400 zone and pushed the index back up to close at 23,477.80, up 46.30 points for the day. On the daily chart, this has formed a hammer candle, with a long lower shadow that shows buying interest showed up at the lower levels. That makes 23,400–23,380 an important support to watch now, while 23,615 stands as the immediate resistance overhead.

Indicators Show Oversold Conditions, But Trend Remains Weak

Daily RSI has dropped to 28.94, which puts it in oversold territory and shows just how stretched the recent selling has gotten. But RSI alone isn't enough to call a reversal, especially with the index still trading below its major EMAs. The short-term EMAs are sitting above current price, with the 50 EMA near 23,749, and the 100 and 200 EMAs even further up — so the bigger trend is still under pressure. That said, hourly RSI has improved to around 39.65, and the 15-minute RSI has jumped to 56.30, which suggests some short-term buying momentum is coming back.

Last 15-Minute Recovery Signals Buying Interest Near Support

The real standout moment came in the final 15 minutes, when Nifty pulled off a sharp 88.55-point recovery, climbing strongly off the lower levels. Combine that late surge with the daily hammer and the oversold RSI, and it's a fairly clear sign that buyers are actively defending the 23,400 zone. That said, the index still needs to reclaim 23,615, and then the 23,750–23,800 area, before this recovery can really be called strong. On the flip side, a clean break below 23,380–23,400 would open the door back toward the next major support near 23,200.

Disclaimer: The article is for informational purposes only and not investment advice.