Nifty50 Erases Gap-Up Gains and Forms Bearish Marubozu - Is 23,000 Next?
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The index erases a 178-point gap-up and closes lower after forming a bearish Marubozu candle, confirming strong seller control. With Nifty below all major EMAs and RSI deeply oversold at 22.23, 23,075–23,000 is the crucial support zone, while 23,400–23,615 remains the key resistance.
✨ Key Takeaways
Nifty 50 Fails to Hold Gap-Up Gains, Forms Bearish Marubozu Candle
Nifty opened with a strong gap-up of 178.05 points on Monday, but that early strength didn't stick around - sellers quickly took charge. The index first went and filled the opening gap, then kept sliding through the rest of the session, eventually closing below Friday's close. On the daily chart, this formed a bearish marubozu candle, which basically tells you sellers were in complete control all day with barely any buying support showing up. Adding to the pressure, the index also broke below the important 23,200 support, keeping the short-term picture firmly bearish.
Key Support Break Keeps Price Action Under Pressure
That break below 23,615 has only made the bearish setup stronger, with Nifty continuing to print lower highs and lower lows on both the daily and hourly charts. Right now, the index is trading near the immediate support zone of 23,075–23,000, and if that gives way, the next major supports come in around 22,479 and then 22,287. On the indicator side, Nifty is trading below all its major EMAs - 20, 50, 100 and 200, which just confirms the broader trend is still weak.
RSI Enters Oversold Zone, While Last 15-Minute CAS Shows Fresh Selling
Momentum indicators keep pointing to weakness too, with daily RSI down at 22.23 and hourly RSI around 24.32, both well into oversold territory. These readings do leave room for a short-term bounce, but the overall bias stays bearish until Nifty can reclaim some key resistance levels. Worth noting - the last 15 minutes of trade saw a CAS of nearly 53 points on the downside, showing selling actually picked up pace right into the close. For the next session, 23,075–23,000 stays the immediate support to watch, while 23,400–23,615 becomes the key resistance zone above.
Disclaimer: The article is for informational purposes only and not investment advice.