Nifty50’s Strong Start Turns Into a Sharp Reversal - What Lies Ahead?

Nifty50 Fails to Sustain Gap-Up Gains; Selling Pressure Emerges Near 24,025

Nifty opened strong on Thursday with a gap-up of 82.55 points, coming right after Wednesday's hammer candle at support - the same support formed by the earlier gap that had just gotten filled. But that early strength didn't last long. Sellers showed up near 24,025, and from there it was a steady slide right through the session. By the close, Nifty was back at 23,873.45, right inside the gap zone again. Basically, sellers are still very much in play at higher levels, even as buyers keep trying to hold the fort down below.

Nifty50 Returns to Gap Zone; 23,830–23,900 Becomes Crucial Support

Nifty is now sitting near the lower half of that gap zone, and the 23,830–23,900 band is shaping up to be the key area to watch tomorrow. The index is still stuck below its major moving averages, so the near-term trend hasn't really shaken off the pressure. On the hourly chart, whatever bounce we saw couldn't push past the EMA cluster sitting around 23,900–24,000. For buyers to really get their confidence back, Nifty needs to close above 24,025 — until then, the setup stays a bit shaky.

Weak RSI Keeps Momentum Under Pressure; Support Holding Will Decide Tomorrow's Move

Momentum isn't helping the bulls much either - RSI on the 15-minute chart is hovering around 38, and on the hourly it's not much better at 40, both pointing to weak buying interest for now. With price still under the key EMAs on the shorter timeframes, any sharp upside looks unlikely right away. Tomorrow really comes down to one thing: if Nifty holds the 23,830–23,900 zone, we could see a move back toward 24,000–24,025. But if that support gives way, the weakness could stretch further down from here.

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