Nifty Trade Setup for September 23: Bears Regain Control as Index Slips Below 23,350, Key Support in Focus

The Nifty 50 ended Tuesday’s session under pressure, closing at 23,329, down 85.30 points or 0.36%. The index opened at 23,454.05 and initially moved up to 23,489 before selling pressure pushed it lower. The index also snapped its four-session winning streak, with weakness in IT and other heavyweight stocks weighing on the benchmark.

Market Breadth Turns Weak as Declines Outnumber Advances

Market breadth remained negative, with 15 Nifty 50 stocks advancing while 35 declined, indicating broader selling pressure. Despite the weak index performance, Media, Realty and Defence sectors emerged as the key gainers during the session. However, gains in these sectors were not enough to offset weakness across several heavyweight stocks. The sectoral divergence suggests that buying interest remained selective rather than broad-based.

Nifty Technical Setup: Selling Pressure Returns Below Key EMAs

On the daily chart, Nifty 50 has slipped back below its short-term EMA cluster and closed at 23,329, keeping the near-term structure cautious. The index tested an intraday low of 23,285.75 before recovering slightly. The immediate support is placed around 23,120, which has held during the recent decline. On the upside, 23,572 remains the key resistance zone, followed by 23,879. A sustained move above 23,572 would be important for a stronger recovery, while a break below 23,120 could increase selling pressure.

Momentum Indicators Remain Weak as RSI Stays Below 50

Momentum indicators continue to reflect weakness. The daily RSI stands at 34.61, while the hourly RSI is around 45.90 and the 15-minute RSI is near 39.87. The daily RSI remains below the 50 mark, indicating that bearish momentum is still present, although it has not yet reached the extreme oversold zone. The short-term charts also show Nifty trading below its key EMA cluster, suggesting that recovery attempts may face resistance unless the index reclaims these averages.

Key Levels to Track for Nifty

For the next trading session, 23,120 remains the crucial support level. If this level holds, the index could attempt a recovery towards 23,400–23,572, where immediate resistance is visible. A sustained breakout above 23,572 could improve the short-term structure and open the way towards 23,879. On the downside, a decisive break below 23,120 would weaken the setup further and bring renewed selling pressure into focus.