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After ending lower for three consecutive sessions, the Nifty 50 managed to bounce back on Thursday, gaining support from buying interest during the closing auction session (CAS). The index closed 46.30 points higher at 23,477.80. However, the recovery lacked strength for most of the session, as the index remained volatile and failed to hold higher levels before witnessing a late surge towards the close. On the daily chart, the index formed a green candle with a long lower shadow, suggesting that buyers stepped in at lower levels. Despite this recovery, the index continues to maintain a pattern of lower highs and lower lows on the daily timeframe, indicating that the short-term trend remains under pressure. From a technical standpoint, the overall structure remains unchanged. However, the formation of a hammer-like candle after a sharp decline, coupled with the index moving into oversold territory, indicates a possibility of a short-term rebound. A hammer pattern after a sustained fall is often considered an early sign of a potential reversal. However, the pattern requires confirmation through subsequent price movement before indicating a meaningful trend reversal. For the recovery to gain momentum, the Nifty needs to sustain above the immediate hurdle of 23,495. The next resistance zone lies between 23,572 and 23,623, which marks the downside gap formed on September 9. A decisive move above this gap zone could improve sentiment and lead to further short covering. On the higher side, the next key resistance level is placed near the 8-day EMA, currently positioned around 23,720. Despite Thursday’s recovery, the index continues to trade below its short-term, medium-term and long-term moving averages, keeping the overall technical setup weak. At the same time, the combination of a hammer formation after a steep decline and the 14-period RSI staying below 30, reflecting oversold conditions, suggests that a short-term relief rally cannot be ruled out. Market participants will closely track whether the index manages to hold above key resistance levels to confirm a sustainable recovery. JSW Infrastructure witnessed a strong rally of nearly 15% from its July low to the August high. However, after the upmove, the stock entered a counter-trend correction phase, during which the decline halted near the 61.8% Fibonacci retracement level. The subsequent consolidation has taken the shape of a triangular pattern. The stock is currently on the verge of a breakout from this pattern. A sustained move above the ₹345 level would be positive and could trigger further upside towards ₹358–369. Traders can maintain a stop loss at ₹334. Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions. Dalal Street Investment Journal (DSIJ) is India’s most trusted financial media company, providing expert stock recommendations, market insights, and wealth-building strategies for nearly four decades. Recognised among Asia’s Top Companies for Customer Satisfaction and Innovation by The Silicon Review and a recipient of the Wealth & Money Management Award by Wealth & Finance International, DSIJ has built a strong reputation for credible investment research and advisory services. As a SEBI-registered Investment Adviser (IA) and Research Analyst (RA), DSIJ reaches investors through its flagship fortnightly magazine and advisory services.<br><br> Over the years, it has remained committed to delivering well-researched insights and stock recommendations. Whether it is evaluating businesses, tracking sector trends, or identifying growth opportunities, DSIJ ensures that its readers and subscribers have the right information to make better investment decisions.<br><br> For nearly four decades, DSIJ has stood for trust, expertise, and wealth creation - helping investors turn knowledge into profits. Catch all the Business News , Market News , Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates. Oops! Looks like you have exceeded the limit to bookmark the image. Remove some to bookmark this image.
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