Nifty Trade Setup for September 24: Bulls Reclaim 23,400 as Recovery Extends, 23,572 Resistance in Focus

The Nifty 50 staged a strong recovery on Wednesday, September 23, closing at 23,446.80, up 117.80 points or 0.50%. The index opened at 23,352.15 and moved higher to an intraday high of 23,466.90. Buying interest across metal, FMCG, PSU Bank and Realty stocks helped the benchmark regain the 23,400 level.

Market Breadth Turns Positive as Bulls Regain Control

Market breadth improved sharply, with 35 stocks advancing against 14 declining in the Nifty 50. The Nifty Metal, Nifty FMCG, Nifty PSU Bank and Nifty Realty sectors led the gains, supporting the broader recovery. The sectoral performance indicates that buying was spread across several key segments rather than being restricted to a few stocks. However, IT remained under pressure, limiting the overall strength of the index.

Nifty Technical Setup: Recovery Holds Above 23,400

On the daily chart, Nifty 50 has recovered from the 23,120 support zone and moved back above the 23,400 mark. The index is now trading around the short-term EMA cluster, with the 23,415 zone acting as an immediate reference point. The hourly and 15-minute charts also show the index holding above their key EMA levels, indicating improving short-term momentum. The immediate resistance is placed at 23,572, while a sustained move above this level could strengthen the recovery towards the next resistance zone.

Momentum Indicators Show Improvement but Confirmation Is Awaited

Momentum indicators have improved across the shorter timeframes. The daily RSI is at 40.11, still below the neutral 50 mark, but the indicator has recovered from lower levels. The hourly RSI stands at 57.21, while the 15-minute RSI is around 57.03, both indicating positive short-term momentum. This divergence between the daily and intraday indicators suggests that the near-term recovery is gaining strength, although a move above the key daily resistance is still needed for stronger confirmation.

Key Levels to Track for Nifty

For the next session, 23,400–23,415 becomes an important near-term support zone, followed by the major support at 23,120. On the upside, 23,572 is the immediate resistance to watch. A sustained breakout above 23,572 could strengthen the recovery and bring higher levels into focus, while failure to hold 23,400 could lead to consolidation and a retest of the lower support zone.