Weekly Trend Report
- 12th Sept, 2026
Week Gone By
Indian equity markets ended sharply lower during the week, with the Sensex declining 2.27% and the Nifty falling 2.09%, weighed down by elevated crude oil prices, rising global bond yields and US inflation concerns. Escalating US-Iran tensions and Brent crude crossing US$100 per barrel further dampened sentiment. Strong US employment data revived expectations of a September Fed rate hike, while the ECB also raised interest rates. Overall, geopolitical tensions, elevated energy prices and tightening global monetary conditions kept markets under pressure.
Week Ahead
Markets are likely to remain volatile in the week ahead, with US-Iran developments and crude oil prices continuing to drive global sentiment. Domestically, August WPI and CPI inflation data will be closely tracked. Globally, China’s unemployment data, key Eurozone economic indicators, US core retail sales and the US Federal Reserve’s September 16 interest rate decision will remain in focus. Overall, market direction is likely to be driven by geopolitical tensions, crude oil movements, inflation data and changing expectations around US monetary policy.
Technical Overview
- Nifty 50 closed at 23,398.10, down 79.70 points (-0.34%) on the day and 499.60 points (-2.09%) for the week. The index remained under pressure throughout the week and ended near the lower end of the weekly range, indicating continued selling pressure and weak buyer participation.
- The recent price action has turned decisively bearish after Nifty failed to sustain above the 24,150–24,200 supply zone and formed a sequence of lower highs. Selling intensified in the last few sessions, pushing the index below the key 23,800–23,900 support area.
- The most important development is the breakdown of the rising trendline drawn from the April low. Nifty had respected this trendline for several months, but the recent fall has now resulted in a clear violation. This indicates that the earlier recovery structure has weakened and the index has entered a corrective phase.
- Nifty has also slipped below the 23,450–23,500 support level, which was an important short-term demand area. The weekly candle closing below this level increases the probability of further downside unless the index quickly reclaims this zone.
- The 23,229–23,000 zone is now the immediate downside support area. Monitor this region closely, as it represents the next key horizontal support cluster. A sustained hold above this zone can trigger a technical bounce, while a decisive breakdown would indicate further deterioration in the structure.
- On the upside, 23,483–23,550 has now become the first resistance zone. Any recovery towards this area is likely to face selling pressure initially, as the earlier support has been broken and may now act as supply.
- Above this, 23,780–23,800 remains an important resistance level, followed by the broader 24,025–24,200 supply zone. Nifty needs to reclaim these levels decisively to repair the short-term technical structure.
- The daily EMA structure has weakened significantly. Nifty is trading below the 9-EMA around 23,679, while the broader moving-average structure remains overhead. This confirms that short-term price momentum is currently tilted towards the sellers.
- Conclusion:The latest price action indicates that Nifty has entered a clear short-term corrective phase. The failure to sustain above 24,150–24,200, followed by the breakdown of the rising trendline and 23,483 support, has strengthened the bearish setup. For the coming sessions, 23,229–23,000 is the key support zone. If this zone holds, Nifty may attempt a relief bounce towards 23,483–23,550, followed by 23,780–23,800. However, sustained trading below 23,483 will keep the short-term bias negative. A decisive break below 23,229–23,000 would open the possibility of a deeper correction towards the 22,500–22,400 region, while a strong recovery above 23,800 would be the first sign of stabilization.
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