Nifty rebound in sight after record 8-week losing streak: Analysts
Nifty has dipped significantly, nearing a critical support range of 22,000 to 22,600, catching the attention of traders looking for a potential technical rebound in the oversold market. Analysts recommend buying Indian Hotel and Mankind Pharma sto...
By ET Bureau | Updated:
ANI
Nifty extended its losing streak to a record eighth consecutive week.
Nifty extended its losing streak to a record eighth consecutive week, moving closer to a crucial long-term support zone around 22,000–22,600. While the index remains under pressure, oversold conditions and support from long-term moving averages and trend lines have raised the possibility of a technical rebound.
ROHAN SHAH, SENIOR TECHNICAL ANALYST, ASIT C. MEHTA INVESTMENT INTERMEDIATES
Nifty Strategy: Nifty has moved closer to the crucial 22,000–22,200 support zone, which coincides with its 200-week EMA and the lower boundary of the multi-year consolidation range. Oversold momentum and breadth readings, coupled with historically favourable October seasonality, increase the probability of a recovery. Traders can buy Nifty Futures for an upside target of 23,000–23,300, with a stop loss below 22,000.
RSI remains in a declining trend and faces resistance around its moving average, while a downside range shift indicates weakening momentum and scope for profit-booking.
Nifty Strategy: Nifty tested key long-term moving-average support zone of 200-week SMA and 200-week EMA around 22,400–22,600, after nearly six years.
Traders can adopt a hedged approach, targeting 22,800 initially and then 23,100–23,200. A decisive break below the April low could negate the rebound and drag the index towards 21,700–22,000.
The stock rebounded from Rs 2,250–2,300 support, reclaimed short-and medium-term averages, and a decisive move above Rs 2,600 would strengthen the trend, driving the stock towards Rs 2,700.
The stock remains under pressure, showing distribution after its fall from Rs 180; repeated failures at the Rs 140–145 zone and consolidation signal supply, with weakness below Rs 130 exposing Rs 124–119.
Nifty Strategy: Nifty tested the rising trendline joining major lows of the last two years and 200-week EMA. The immediate bias remains down, and a follow-through weakness below the April low of 22,182 could extend the decline towards the CY25 low of 21,750.
However, oscillators on the weekly and daily charts have reached extremely oversold territory after the sharp decline. Holding above the April 2026 low, which also coincides with key long-term support, could trigger a pullback towards 22,800 and 23,000.
Traders can buy Nifty October Futures at current levels and on dips towards 22,400 for targets of 22,800 and 23,000, with a stop loss at 22,200.
Offers a fresh opportunity, with Rs 775 being the confluence of falling trendline resistance and the 61.8% retracement of the previous decline from Rs 843 to Rs 682.
