Summary:
Nifty prediction today, September 23, focuses on 23,120 support after the Nifty 50 closed at 23,329 following a four-session recovery. The index faces resistance at 23,572, while weak breadth, subdued momentum and selling pressure keep the technical setup cautious.
The Nifty 50 witnessed profit booking on Tuesday after a four-session recovery, closing at 23,329, down 85.30 points or 0.36%. The index opened at 23,454.05 and briefly moved higher to touch an intraday high of 23,489 before reversing gains as selling pressure emerged at higher levels. Weakness in IT stocks and select heavyweights dragged the benchmark lower, preventing the index from sustaining its early momentum.
Broader Market Participation Remains Weak
Market breadth turned negative during the session, with 35 stocks from the Nifty 50 basket ending lower, while only 15 stocks closed in positive territory. The decline indicated that selling pressure was spread across several constituents rather than being limited to a few stocks.
Among sectoral indices, Media, Realty and Defence-related stocks showed strength, but gains in these pockets were insufficient to counter weakness in major index contributors. The selective buying pattern highlighted a lack of broad-based participation at higher levels.
Nifty Technical View: Short-Term Trend Remains Cautious
From a technical perspective, the Nifty 50 failed to hold above its short-term exponential moving average (EMA) cluster and closed near 23,329. The index slipped to an intraday low of 23,285.75 before recovering marginally towards the close.
The immediate support zone remains around 23,120, which has acted as a cushion during the recent decline. On the higher side, the index faces resistance near 23,572, followed by the next hurdle around 23,879. A move above 23,572 would indicate improving momentum, while a breakdown below 23,120 could lead to further weakness.
RSI Signals Continued Pressure, Recovery Needs Momentum
Momentum indicators continue to suggest caution. The daily RSI stands at 34.61, while the hourly RSI and 15-minute RSI are placed around 45.90 and 39.87, respectively.
The daily RSI remains below the 50 mark, indicating that momentum is still tilted towards the weaker side. However, the indicator has not entered the extreme oversold zone, suggesting that further consolidation or downside movement cannot be ruled out.
Short-term charts show the index trading below key EMA levels, indicating that any recovery attempt may face selling pressure unless Nifty manages to reclaim these moving averages.
Nifty Levels to Monitor
For the upcoming session, the 23,120 zone remains the key support level. Holding above this area could allow the index to attempt a recovery towards 23,400 and 23,572.
A sustained breakout above 23,572 may improve the near-term technical setup and open the possibility of a move towards 23,879. On the other hand, a decisive move below 23,120 could weaken market sentiment and increase downside pressure.
