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After forming an inside candle on Wednesday, the Nifty witnessed a breakdown from the inside candle pattern on Thursday, opening with a gap down. Selling pressure increased as the session progressed, with the index slipping below the low of the long bearish candle formed on September 15. The decline further intensified as the Nifty breached the horizontal trendline support near the 23,070 level. The day’s movement resulted in the formation of a long bearish candle with a gap-down opening, reflecting strong selling interest among market participants. The index closed below the June 8 swing low of 23,070, confirming a breakdown from the four-month-long horizontal support zone. The overall technical setup has turned negative, with bears gaining control in the short term. A sustained break below the 23,000 mark could extend the decline towards the next support level of 22,719 in the near to medium term. On the upside, any recovery attempt is likely to face resistance in the September 24 gap zone, placed between 23,282 and 23,350. The 14-period daily RSI is currently placed near 31. During the recent recovery attempt, the RSI failed to cross above the 40 mark and reversed lower, indicating a shift towards a super bearish range. The MACD histogram has also expanded on the downside, highlighting increasing bearish momentum. South Indian Bank witnessed a strong rally of nearly 32% from its May 18 low to the June 18 high. Thereafter, the stock retraced around 50% of the previous upmove and entered a consolidation phase, forming a triangular pattern. Recently, the stock has delivered a breakout from the triangular formation, supported by strong volumes. The NSE recorded the highest single-day trading volume in over two months, indicating increased participation during the breakout. Additionally, the stock is trading above its key short-term, medium-term, and long-term moving averages, suggesting a positive trend. The 14-period daily RSI has moved into bullish territory, while the daily MACD is trending upwards and sustaining above its nine-period average, confirming the improving momentum and positive bias in the stock. In short, the stock has witnessed a decisive breakout, and sustaining above the ₹50 level could keep the momentum intact. Going forward, the stock has the potential to test the ₹55–58 zone. Traders can consider a stop loss at ₹46.50. 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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