Nifty Trade Setup for September 28: Bulls Attempt a Recovery Above 23,120, 23,300–23,450 Zone in Focus

The Nifty 50 showed signs of recovery on Friday after Thursday’s sharp sell-off. The index moved up from the 23,000–23,050 zone and was trading around 23,140.50, gaining 77.40 points or 0.34% on the chart. The recovery comes after Nifty broke below the key 23,120 support in the previous session, making the next few sessions important for determining whether this is a relief bounce or the start of a stronger recovery.

Market Breadth Turns Positive Despite Sectoral Weakness 

Market breadth improved sharply, with 34 stocks advancing against 15 declining in the Nifty 50. However, Nifty Consumer Durables, CNX Realty and CNX Auto remained among the weaker sectors. The positive breadth indicates that buying participation has returned after Thursday’s broad-based sell-off, although weakness in these sectors suggests that the recovery remains selective.

Nifty Technical Setup: Recovery Emerges From 23,000 Zone

On the daily chart, Nifty has bounced from the 23,000–23,050 zone and is attempting to reclaim the broken 23,120 support. The index is currently around 23,140, while the short-term EMA cluster is positioned higher near 23,300–23,575. On the hourly chart, price has started moving back above the shorter EMAs, suggesting some improvement in near-term momentum. However, the broader trend remains cautious until Nifty reclaims the 23,300–23,450 resistance zone.

Momentum Indicators Show Sharp Intraday Recovery

Momentum indicators have improved significantly on the shorter timeframes. The daily RSI is at 34.23, indicating that the broader momentum remains weak but has moved away from the recent oversold area. The hourly RSI has recovered to 41.56, while the 15-minute RSI has jumped to around 59.75, showing stronger intraday buying momentum. A sustained move above the 50 mark on the hourly RSI would provide further confirmation of improving momentum.

Key Levels to Track for Nifty

For the next trading session, 23,120 remains the immediate support to watch, followed by the 23,000–23,050 zone. On the upside, 23,300–23,450 is the key resistance area, where the short-term EMA cluster could restrict the recovery. A sustained move above 23,450 could strengthen the rebound and bring 23,575 into focus. Conversely, failure to hold 23,120 could bring the 23,000 zone back under pressure.