After a sharp gap-down opening, the Nifty 50 gradually trimmed losses as the day progressed and eventually closed with a moderate loss of a third of a percent on September 11. Some short-covering and easing oil prices supported the recovery, but sustained follow-up buying interest will be crucial to confirm a meaningful recovery in the upcoming sessions. Overall, the trend remained in favour of the bears, with all key moving averages trending lower and momentum indicators remaining in a bearish phase.
In case of further recovery, the 23,500–23,600 zone is expected to act as a hurdle for the Nifty 50. A decisive and sustained move above this zone could open the door for a rise towards 23,800–24,000 levels. On the downside, immediate support is placed at 23,231, Friday’s low, from where the recovery began during the day. A break below this level could trigger a fall towards 23,000, according to experts.
The Nifty 50 opened more than 200 points lower and corrected to an intraday low of 23,231. After around 45 minutes of initial trade, the index began to recoup losses as the session progressed and touched an intraday high of 23,448 in the last couple of hours before moving in a range. Eventually, the index ended at 23,398, off the day’s low, down 80 points, or 0.34 percent.
The RSI fell to 27.22 and remained in the oversold zone, while the MACD slipped further and remained well below the zero line, with the histogram’s red bars expanding for the 50th consecutive session. These indicators point to continued weakness in momentum, although the oversold RSI suggests the possibility of a short-term pullback.
On the daily and intraday charts, the market is showing a lower-high and lower-low formation. On the weekly chart, the index declined 2.09 percent, extending its downtrend for the fifth consecutive week and forming a long bearish candle, which is largely negative.