Nifty50 Recovers From Lows as Doji Signals a Pause in Selling - What’s Next?
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After Tuesday’s heavy sell-off, buyers defend the 23,118 zone and push Nifty50 higher by 99 points. Deeply oversold RSI supports a possible bounce, but the broader trend remains weak below major EMAs.
✨ Key Takeaways
Nifty 50 Forms an Indecisive Doji After Tuesday's Sharp Sell-Off
After Tuesday's heavy sell-off, Nifty managed to steady itself a bit on Wednesday, closing at 23,217.60, up 99 points. But the daily candle was fairly small-bodied with a long lower shadow, giving it that indecisive, doji-like look. The index opened at 23,201.60, dipped down to 23,116.10, and then recovered off the lows. What this really shows is a tug-of-war between buyers and sellers near the 23,075-support zone — though on its own, this candle isn't enough to call a reversal. The bigger structure is still making lower highs and lower lows.
Nifty Remains Below Major EMAs While RSI Stays Weak
The indicator picture is still on the weaker side, with Nifty trading below all its major EMAs — 20, 50, 100 and 200. The short-term EMA cluster is also sitting above current price, which keeps a lid on any immediate recovery. Daily RSI is around 27.31, still in oversold territory, while hourly RSI is near 38.15 and the 15-minute RSI has picked up to around 45.77. That oversold reading does leave room for a bounce, but for any real strength, the index needs to reclaim those nearby EMA levels. On the downside, 23,075 is the immediate support, followed by 22,479 and 22,287.
Price Action Signals Consolidation Near Support
On the hourly chart, the downtrend is still very much intact — price is below a declining EMA structure and running into resistance on every attempt to recover. That said, Wednesday's session did hold above 23,075 and formed a small indecisive candle after Tuesday's big fall, which suggests selling pressure has at least paused near support for now. On the upside, 23,400–23,500 is the first zone to watch, followed by the important 23,615 resistance. A sustained move above 23,615 would genuinely improve the short-term setup, while a clean break below 23,075 would put 22,479 and 22,287 back in focus.
Disclaimer: The article is for informational purposes only and not investment advice.