Nifty Trade Setup for September 29: Bears Tighten Grip as Index Breaks Below 22,800, 22,200 Support in Focus

The Nifty 50 witnessed another sharp sell-off on Monday, September 28, closing at 22,780.25, down 360.25 points or 1.56%. The index opened at 23,064.90 and slipped to an intraday low of 22,762.20, breaking below the important 23,000 level and extending its recent decline. Selling remained broad-based across sectors, with PSU Bank, Realty and Energy among the weaker pockets.

Market Breadth Turns Extremely Weak as Only Three Stocks Advance

Market breadth remained severely negative, with just 3 stocks advancing against 47 declining in the Nifty 50. Nifty PSU Bank, CNX Realty and CNX Energy were among the weakest sectors, highlighting the broad nature of the selling pressure. The weak breadth, combined with the index breaking below multiple support levels, indicates that buying participation remains limited.

Nifty Technical Setup: Bears Break 23,000 as Selling Accelerates

The daily chart has turned significantly weaker after Nifty decisively broke below the 23,120 support and then slipped below the psychological 23,000 mark. The index closed at 22,780.25, well below the major EMA cluster, with the 23,199–23,447 zone now acting as an important overhead resistance area. On the hourly and 15-minute charts, Nifty is also trading below all key EMAs, confirming strong short-term selling pressure. The next major daily support visible on the chart is around 22,222.

Momentum Indicators Remain Deeply Weak

Momentum indicators continue to signal strong bearish pressure. The daily RSI has fallen to 27.69, while the hourly RSI stands at 23.27 and the 15-minute RSI is around 31.60. The daily and hourly RSI readings are firmly in the oversold zone, showing the intensity of the recent decline. However, oversold conditions alone do not confirm a reversal, and the price structure remains weak as long as Nifty trades below the broken support levels.

Key Levels to Track for Nifty

For the next session, 22,760–22,780 becomes the immediate zone to watch, followed by the major daily support near 22,222. On the upside, 23,000–23,120 is likely to act as the first resistance zone after the breakdown, followed by 23,200–23,450, where the key EMAs are positioned. A sustained recovery above 23,120 would be needed to ease the immediate selling pressure, while continued trading below this level keeps the broader short-term structure weak.