The four-session recovery in the Nifty 50 came to a halt on Tuesday as the index faced selling pressure near the 23,500 mark. After touching an intraday high, the index declined nearly 160 points from the day’s peak and closed at 23,329, down 85.30 points.
The session witnessed profit booking at higher levels, indicating that the recent recovery is facing resistance. The index formed a large bearish candle on the daily chart, which completely engulfed the bullish candle formed in the previous session. This resulted in the formation of a bearish engulfing candlestick pattern, suggesting caution after the recent rebound.
Recovery loses momentum at key technical levels
In the previous session, the Nifty had managed to reclaim its 8-EMA, but it failed to sustain above this short-term trend indicator and slipped back below it on Tuesday.
During the recent pullback rally, the index has retraced around 38.2% of the recent decline from the September 3 high to the September 16 low. This recovery remains relatively shallow compared with the earlier retracement, where the index had recovered nearly 50% of the fall from the August 3 high to the August 19 low.
Despite the four-day winning streak, the index was not able to move above the large bearish candle formed on September 15. This suggests that the recent rise could be a recovery phase following the sharp sell-off rather than the beginning of a sustained uptrend.
Broader trend remains under pressure
From a technical perspective, the Nifty continues to trade below key short-term, medium-term, and long-term moving averages, indicating that the broader trend remains weak.
The 14-period RSI has also turned lower after the recent recovery, reflecting a loss of momentum. The index is currently trading within the range of the large bearish candle formed on September 15, keeping the near-term outlook dependent on a decisive breakout from this range.
23,500–23,600 zone remains a key resistance
Going ahead, the 23,500–23,600 zone will act as an important resistance area for the Nifty. This region also coincides with a change-in-polarity level, making it a crucial hurdle for the index.
On the downside, immediate support is placed near 23,286, which aligns with Friday’s low as well as Tuesday’s session low. A sustained break below this level could increase selling pressure and push the index towards the lower end of the September 15 bearish candle, placed near 23,119.
The horizontal support zone around 23,100–23,120 will be important for the index, as a breach of this level could indicate further weakness.
Nifty remains trapped within range of large bearish candle of September 15
At present, the Nifty is positioned between a strong resistance zone near 23,500–23,600 and key support around 23,100–23,120. The index is likely to remain range-bound until it breaks decisively on either side of the September 15 bearish candle.
A breakout above the resistance zone could improve sentiment and support further recovery, while a breakdown below the support zone may bring renewed selling pressure.
Stock to Watch: Inventurus Knowledge Solutions (IKS)
Inventurus Knowledge Solutions (IKS) witnessed a strong upmove from its May 18 low to the high recorded on July 10, 2026. Following this rally, the stock entered a corrective phase and retraced nearly 50% of the previous upmove.
The stock found support near the 50% Fibonacci retracement level and resumed its upward movement. On Tuesday, it broke out above a downward-sloping trendline that was formed by connecting the July 10 high and subsequent lower highs. The breakout was accompanied by an improvement in trading volumes, indicating increased buying interest.
Momentum indicators have also turned favourable, with the 14-period daily RSI moving into the bullish zone. Additionally, the MACD histogram has shown a rise in positive momentum, supporting the ongoing recovery in the stock.
Going forward, sustaining above the ₹1,875 level would keep the near-term outlook positive. The stock may move towards ₹1,933, followed by ₹2,000 in the short to medium term. Traders can maintain a stop loss at ₹1,795.
