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The Indian equity market ended the final trading session of September on a weak note, with the index closing in the red after giving up more than 180 points from the day’s high. This marked the third consecutive session of decline for the index. The weakness during September was significant, with the index falling nearly 6% during the month. This marked the sharpest monthly decline since March 2026 and the steepest September fall since 2016. The day’s price action resulted in the formation of a small, red-bodied candle with a long upper shadow. The index opened lower and gradually moved higher during the session, touching an intraday high of 22,809.35. However, the recovery failed to sustain as selling pressure emerged at higher levels, dragging the index lower by the close. Although the index formed a higher high and higher low structure compared to the previous session, there is no clear confirmation of a reversal yet. The attempted hammer formation did not receive confirmation, while the long upper shadow indicates that sellers continue to remain active near higher levels. For a meaningful reversal, the index needs to form a strong positive candle and demonstrate sustained buying interest. With a long weekend approaching, market participation could remain subdued on Thursday. The ongoing decline is set to enter its eighth consecutive week, and since eight is a Fibonacci number, the probability of a short-term pullback cannot be ruled out. Additionally, the index is approaching its 200-week moving average, which remains an important long-term support zone. The immediate support area for the index is placed between 22,500 and 22,600. From a technical perspective, the index has entered an oversold zone and is trading significantly below key averages. It is currently around 5.36 per cent below its 50-day moving average (50-DMA), while the Bollinger Bands continue to slope sharply downward, indicating that the recent decline has been stretched. The Relative Strength Index (RSI) is placed at 25.27, indicating extreme oversold conditions. While oversold readings can persist during strong downtrends, such levels generally suggest that the downside momentum may be reaching an extended phase. The MACD remains significantly below the zero line, highlighting the strength of the prevailing bearish trend. However, extended trends often witness periods of consolidation or counter-trend movements before deciding on the next direction. For the index to show early signs of recovery, it needs to close above the previous day’s high of 22,809. A move above this level would indicate improving buying interest. The immediate resistance levels are placed at 8-EMA resistance: 22,971 and 23.6% Fibonacci retracement level: 23,090. A sustained move above these resistance zones could trigger a reasonable counter-trend rally. Until then, the overall trend remains under pressure, with 22,500–22,600 acting as the key support zone to watch. Sona BLW Precision Forgings is showing signs of a potential bullish breakout as the stock closed near the pivot level of a seven-week flat base. The stock has tested this pivot level four times in the last six trading sessions, indicating strong buying interest around this zone. The stock has witnessed higher-than-average volumes over the past three weeks, suggesting increased participation from market participants. Its Relative Strength (RS) line has moved to a new high, highlighting its outperformance compared to the broader market. From a technical perspective, the setup remains positive, with both short-term and long-term moving averages trending upward. The Bollinger Bands have started expanding, indicating a possible rise in volatility and momentum. The moving average ribbon continues to remain in an uptrend, supporting the positive price structure. Momentum indicators are also showing strength. The MACD has given a bullish signal, while the RSI is approaching a shift into the strong bullish zone. The KST and Stochastic RSI indicators are also on the verge of generating fresh bullish signals. Additionally, the Elder Impulse System has formed a strong bullish bar, indicating improving momentum. Overall, the technical setup suggests that the stock is preparing for a possible breakout. A sustained move above ₹836 could trigger further upside, with the stock potentially testing ₹890 levels. Traders can maintain a stop loss at ₹812 to manage downside risk. 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. 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