Nifty Trade Setup for September 22: Bulls Stage a Recovery From Key Support, Resistance Zone in Focus

The Nifty 50 staged a recovery on Monday, September 21, closing at 23,414.30, up by 67.90 points or 0.29%. The index opened at 23,330.20 and moved higher during the session, touching an intraday high of 23,466.80. Buying interest remained visible near lower levels, with the index holding above its recent support zone and extending the recovery from the recent low.

Market Breadth Remains Positive

Market breadth improved during Monday’s session. Among the Nifty 50 constituents, 30 stocks closed higher, while 20 stocks ended lower, indicating moderately positive participation. The advance-decline ratio suggests that buying interest was relatively broad-based, although the index continues to face resistance at higher levels.

Nifty Pharma, Realty, Healthcare and FMCG Lead Sectoral Gains

Sectoral performance remained supportive, with Nifty Pharma, Nifty Realty, Nifty Healthcare and Nifty FMCG emerging as the leading gainers. Strength across these defensive and consumption-oriented sectors provided support to the broader market. The positive sectoral participation also helped the Nifty maintain its recovery despite the broader short-term trend remaining under pressure.

Nifty Technical Setup: Recovery From Support Continues

Monday’s price action formed a bullish candle, with the Nifty recovering from an intraday low of 23,314.80 and closing near the upper half of the day’s range. The index continues to defend the important 23,120 support zone, which has acted as a key base during the recent decline.

On the hourly chart, the Nifty has formed a sequence of higher lows after finding support near the 23,120 level. The 15-minute chart shows the index moving within a rising channel, indicating improving short-term price structure. However, the index is approaching the 23,572 resistance level, which remains an important hurdle for the recovery.

The Nifty continues to trade below several important medium-term EMAs on the daily chart, keeping the broader trend under pressure. The immediate challenge is therefore to sustain the recovery above the 23,400–23,450 area and subsequently cross the 23,572 resistance with stronger participation.

Momentum Indicators Show Gradual Improvement

The 14-period daily RSI stands at 36.89 and has started recovering from deeply weak levels, indicating that selling pressure has moderated. However, the indicator remains below the neutral 50 mark, suggesting that the broader momentum has not yet turned decisively positive.

On the hourly chart, RSI has improved to around 57, while the 15-minute RSI is near 52, reflecting better short-term momentum. The improvement across lower time frames supports the recent recovery, but a sustained move above the key resistance zone would provide stronger confirmation.

Key Levels to Track for Nifty

For the recovery to extend, the Nifty needs to sustain above the 23,400–23,450 zone and decisively cross 23,572. A sustained breakout above this resistance could strengthen the recovery and bring the 23,650–23,775 zone into focus.

On the downside, 23,300–23,200 remains the immediate support area, while 23,120 is the crucial base visible on the daily chart. As long as the index holds above 23,120, the recent recovery structure can remain intact. However, a decisive break below this level could bring renewed selling pressure and drag the index towards lower support zones.