Nifty Trade Setup for September 25: Bears Break Key 23,120 Support as Selling Intensifies, 23,000 in Focus

The Nifty 50 witnessed heavy selling pressure on Thursday, September 24, closing at 23,063.10, down 383.70 points or 1.64%. The index opened at 23,221.80 and slipped to an intraday low of 23,046.15, breaking below the crucial 23,120 support zone. The sharp decline was accompanied by broad-based selling across banking, financial services and metal stocks.

Market Breadth Turns Extremely Weak as Selling Broadens

Market breadth deteriorated sharply, with only 3 stocks advancing against 47 declining in the Nifty 50. Nifty India Digital, CNX Finance, Nifty Private Bank and CNX Metal were among the sectors facing strong selling pressure. The weakness was broad-based, with financial and metal stocks emerging as major drags on the benchmark.

Nifty Technical Setup: Bears Break 23,120 Support

The daily chart has turned significantly weaker after Nifty 50 decisively broke below the 23,120 support, which had held during the previous decline. The index closed at 23,063.10, well below the short-term EMA cluster, with the daily EMAs around 23,345–23,558 acting as overhead resistance. The hourly and 15-minute charts also show a sharp breakdown below their respective EMA clusters. With 23,120 now acting as immediate resistance, the 23,000 zone becomes the next important level to monitor.
 

Momentum Indicators Enter Weak Zone

Momentum indicators have weakened sharply across all timeframes. The daily RSI has fallen to 30.97, while the hourly RSI stands at 26.96 and the 15-minute RSI is around 27.33. Although these readings indicate that the index has entered a weak and relatively oversold zone, there is currently no clear reversal signal on the charts. Sustained trading below 23,120 would keep the short-term momentum tilted towards the bears.

Key Levels to Track for Nifty

For the next trading session, 23,000 is the immediate psychological support after the breakdown of 23,120. If selling pressure continues and 23,000 fails to hold, lower levels could come into focus. On the upside, 23,120 has now become the first resistance, followed by the 23,345–23,465 EMA zone. A sustained move back above 23,120 would be required to ease the immediate selling pressure, while failure to reclaim it would keep the short-term structure weak.