The Nifty 50 is hovering around a crucial support level of 22,786, last seen on 25th January 2025, with repeated tests of this level over the past four trading sessions. This consolidation hints that a significant price move is on the horizon. 

Technical Breakdown:

• Bollinger Bands: Nifty is trading near the lower band, suggesting oversold conditions. A breakdown below could signal further downside.
• 200 EMA: At 23,581, the 200-day EMA sits well above current levels, highlighting Nifty’s position below a key long-term support.
• RSI (14): At 37.28, RSI is approaching oversold territory, but downside potential remains.
• MACD: Bearish momentum continues, with the MACD line below the signal line and widening.

Key Levels to Watch:

• Immediate Support: 22,786 (25th January low)
• Next Support Zones: 22,400 – 22,000
• Long-Term Support: 21,800 (March–May 2024 support zone)

Market Outlook:

• Bullish Scenario: If 22,786 holds, Nifty may rebound to 23,200–23,400.
• Bearish Scenario: A breakdown below 22,786 could lead to a sharp decline, testing 22,400, 22,000, and possibly 21,800.

Final Takeaway:The next few sessions are critical. Traders should monitor these support levels and prepare for potential sharp moves while managing risk effectively.

Risk Discalimer : https://geniresearch.com/risk-disclosure-disclaimer/

Author Details:

Name: Ashish Singh (Research Analyst)

SEBI Registration No: INH000014340

BSE Enlistment No: 5985

Disclaimer: “Registration granted by SEBI, and certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors.” Investment in the securities market is subject to market risks. Read all the related documents carefully before investing.