The Nifty 50 snapped a three-day losing streak and ended 0.2 percent higher on September 10. However, the modest recovery is expected to remain unsustainable amid deteriorating technical indicators, rising inflation concerns due to a spike in Brent crude oil prices amid tensions in West Asia, and rising US bond yields, all of which point to continued bearish dominance in the equity markets. According to experts, the index could break below the previous day's low and fall towards 23,300. A further decline towards the June low of 23,070 cannot be ruled out if the index breaks below 23,300. On the upside, the 23,500-23,600 range is likely to act as an immediate key resistance zone for the index.
Here are 15 data points we have collated to help you spot profitable trades:
Resistance based on pivot points: 23,495, 23,522, and 23,566
Support based on pivot points: 23,407, 23,380, and 23,336
Special Formation: The Nifty 50 formed a bullish candle with a noticeable lower wick, indicating buying interest at lower levels, but failed to move back above the previous day's high. All key moving averages continued to trend lower. The RSI stood at 28.94, compared with 26.44 in the previous session, but remained in the oversold zone and below its signal line. The MACD declined further, with the red histogram bar expanding for the fourth consecutive session. All these indicators point to continued weakness and suggest that bears remain in control of the market.