Nifty Trade Setup for October 15: Nifty Falls 0.44% After Rally, Will 22,550 Support Hold?

Nifty 50 witnessed profit booking on October 14, declining 99.25 points, or 0.44%, to close at 22,622.70. The index opened at 22,715.75, touched a high of 22,757.95 and slipped to an intraday low of 22,558.95. The decline followed Tuesday’s sharp recovery, with Nifty struggling to sustain momentum near its immediate resistance zone. Although the index is holding above its short-term daily EMA, weakness in market breadth and resistance on the hourly chart suggest that volatility may continue in the next session.

Market Breadth: Sellers Regain Control as 34 Stocks Decline

Market breadth weakened, with 16 stocks advancing and 34 declining in the Nifty 50 index. Nifty IT, Nifty FMCG and Nifty Energy were the leading sectors, providing some support amid broader selling pressure. The negative advance-decline ratio indicates that Tuesday’s strong recovery has not yet translated into sustained buying across the index. For the next session, traders should watch whether these relatively strong sectors can support the market or whether selling pressure spreads further.

Nifty Technical Setup: Resistance Near 22,850 Remains Crucial

Nifty 50 closed just above its short-term daily EMA near 22,611.58, making this an important level to watch. Immediate resistance is placed around 22,716–22,851, where the hourly chart shows selling pressure near its moving averages. A sustained move above 22,851 could improve momentum and open the way towards 23,076.90. On the downside, a break below the intraday low of 22,558.95 may weaken the recovery and bring the major support at 22,221.85 back into focus.

RSI and Momentum Indicators: Recovery Momentum Shows Signs of Weakness

The daily RSI stands at 41.66, remaining below the neutral 50 mark and indicating that broader momentum is still weak. The hourly RSI at 54.49 remains above 50, suggesting that some recovery strength is intact on the intermediate timeframe. However, the 15-minute RSI at 47.70 reflects softer short-term momentum after the intraday pullback. The mixed readings suggest that Nifty may remain volatile, with a decisive move beyond nearby support or resistance needed to establish the next directional trend.

Key Levels to Track for Nifty on October 15

Nifty’s failure to sustain Tuesday’s recovery has brought the market back into a crucial support-resistance zone. A sustained move above 22,851 could strengthen the rebound towards 23,076.90. However, the daily RSI remains below 50 and market breadth is negative, keeping the broader outlook cautious. A break below 22,558.95 may increase selling pressure and expose the 22,221.85 support zone.