Nifty Trade Setup for October 1: Bears Maintain Control as Index Slips Below 22,700, 22,222 Support in Focus

The Nifty 50 extended its decline for the third consecutive session on Wednesday, September 30, closing at 22,620.45, down 95.75 points or 0.42%. The index opened at 22,665 and touched an intraday high of 22,809.95 before slipping to a low of 22,595.20. The broader technical structure remains weak as the index continues to trade below key support and moving-average levels.

Market Breadth Remains Negative Despite Gains in Select Sectors

Market breadth remained weak, with 18 stocks advancing and 32 declining out of the Nifty 50 constituents. Among sectors, CNX Media, CNX Realty and Nifty India Defence were the leading gainers. However, the negative breadth indicates that selling pressure continued across a large part of the index, limiting the impact of gains in selected sectors.

Nifty Technical Setup: Bears Retain Control Below 23,120

The daily chart continues to show a clear bearish structure, with Nifty trading below the important 23,120 support-turned-resistance level and below its major EMAs. The index also slipped below 22,700, while the next major support visible on the daily chart is around 22,221.85. On the hourly chart, the index remains below all key EMAs, reinforcing the prevailing weakness.

Momentum Indicators Remain Weak as ADX Signals a Strong Trend

The daily RSI stands at 25.27, keeping the index in the oversold zone, while the hourly RSI is at 34.67 and the 15-minute RSI at 36.59. Despite the oversold readings, there is no clear bullish reversal signal yet. The daily ADX at 36.78 and hourly ADX at 43.77 indicate that the prevailing trend has considerable strength, meaning oversold conditions alone may not be enough to trigger a sustained recovery.

Key Levels to Track for Nifty

For the next session, 22,595–22,620 will be the immediate zone to watch on the downside, based on Wednesday's trading range and closing level. A decisive break below this area could bring the major support at 22,221.85 into focus. On the upside, 22,700–22,800 is the first resistance zone, followed by 23,006–23,120. A sustained move above 23,120 would be required to signal meaningful improvement in the short-term structure.