Nifty Trade Setup for September 30: Index Holds Above 22,700 After Sharp Sell-Off, 22,222 Support in Focus

The Nifty 50 remained under pressure on Tuesday, September 29, but selling intensity eased after the previous session’s sharp decline. The index closed at 22,716.20, down 64.05 points or 0.28%, after moving between 22,569.65 and 22,753.25. Although the index recovered from the intraday low, it remained below the key 23,000–23,120 resistance zone, keeping the broader technical setup weak.

Market Breadth Remains Negative Despite Selective Sector Gains

Market breadth remained weak, with 18 stocks advancing and 32 declining out of the Nifty 50 constituents. Among sectors, CNX Metal and CNX Pharma were the leading gainers. The negative breadth indicates that selling pressure remained broad-based, even as selective sectors attracted buying interest. A sustained improvement in market breadth would be important for a stronger recovery in the index.

Nifty Technical Setup: Recovery Faces Resistance Below 23,000

On the daily chart, Nifty continued to trade below the earlier support zone around 23,120, which has now turned into an important resistance area. The index also remains below its key EMAs, with the broader moving-average cluster positioned well above the current market price. The daily chart shows the next major support around 22,221.85, while the hourly chart also remains below its key EMAs. This keeps the larger trend tilted towards the downside.

Momentum Indicators Show Oversold Conditions

Momentum indicators continue to reflect weakness on the higher time frames. The daily RSI stands at 26.71, indicating an oversold zone, while the hourly RSI is around 35.03. However, the 15-minute RSI has improved sharply to 63.39, showing that short-term buying emerged after the morning decline. This divergence suggests an intraday recovery attempt, but sustained strength above key resistance is still required for confirmation.

Key Levels to Track for Nifty

For the next session, 22,569–22,570 will be the immediate downside level to watch, based on Tuesday’s intraday low. A sustained break below this zone could keep 22,221.85 as the next major support. On the upside, 22,800–23,000 is the first important resistance area, followed by 23,120. A decisive move above 23,120 would improve the short-term structure, while failure to reclaim this zone could keep the index vulnerable to further selling.