Nifty50 Nears Oversold Territory as Buyers Defend 23,200 - Reversal Ahead?
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Friday’s long lower shadow shows buying interest emerging near the key 23,200–23,300 zone, while daily RSI falls to 27.22. The broader trend remains weak below major EMAs, making 23,615 the crucial resistance for any meaningful recovery.
✨ Key Takeaways
Nifty 50 Extends Decline, But Buyers Defend 23,200–23,300 Zone
Nifty stayed under pressure on Friday, opening at 23,270.30 and slipping to an Intraday low of 23,231.40 before recovering some ground to close at 23,398.10, down 79.70 points. The daily chart is still showing that same lower-high, lower-low pattern, keeping the short-term structure bearish. That said, today's candle has a long lower shadow, which tells you buyers did show up near the 23,200–23,300 zone. This area also happens to be the earlier gap zone, so it's an important spot to watch going forward. On the upside, 23,615 remains the level to beat, followed by 23,700–23,800 above that.
Oversold RSI Signals Selling Pressure Is Stretched
The indicators are still leaning bearish overall. Daily RSI has dropped to 27.22, well inside oversold territory, showing just how stretched this recent selling has gotten. Nifty is also trading below its key short and medium-term EMAs — the 20 EMA is near 23,821 and the 50 EMA around 24,040 — which confirms the bigger trend is still weak. On the hourly chart, RSI is around 41.18, and the 15-minute RSI has bounced back to 52.71, hinting that short-term momentum is starting to improve off these oversold levels. So while there's room for a technical pullback here, it's not yet a confirmed reversal in trend.
Short-Term Recovery Needs to Cross 23,615
Looking at the 1-hour and 15-minute charts, buyers seem to be trying to stabilise things around the 23,200–23,400 zone after that sharp fall. The 15-minute RSI moving back above 50 supports this early recovery attempt, though price is still sitting below the major hourly EMAs. For any real sign of strength, Nifty needs to push past 23,615 and hold there — that could open the door toward 23,700–23,800. On the flip side, a clean break below 23,200 would weaken this support further and could drag the index toward the next lower levels. So overall, the bigger trend is still bearish, but with RSI this oversold and buyers stepping in near support, a short-term bounce is definitely on the table.
Disclaimer: The article is for informational purposes only and not investment advice.