Nifty Tests Support Break; Piercing Line Forms

Nifty 50 traded within the 23,070-23,600 range for most of the week, but the lower boundary gave way on Thursday with the first daily close below 23,070 since the range formed. Follow-through selling did not materialize — Friday saw the index open at 23,035, make a low of 23,020.95, and recover to close at 23,140.50 (+0.34%), forming a Piercing Line at the confluence of the Identical Support, a falling trendline, and the pattern low. RSI shows a positive divergence — price made a lower low on Friday while RSI made a higher low, now at 34.42, up from 33.66. The intermediate picture stays weak, with the index below the falling 50 SMA (23,994.75) and 200 SMA (24,417.20). Options data (Sensibull, 25 Sep) shows the put-heavy skew reversing, with Call OI (29.85 Cr) now ahead of Put OI (28.29 Cr) and PCR at 0.92. Friday's single-day data leans supportive though — call writers unwound 35.81L contracts while put writers added 4.85 Cr, consistent with support building near the lows. Max Pain for the 29 Sep monthly expiry sits at 23,250. Resistance: 23,349, then 23,600-23,630. Support: 23,163 (confirmation trigger), then 23,020 (pattern low/invalidation). A daily close above 23,163 would confirm the reversal; a close below 23,020 would put the breakdown back in play

remains a name to track from last week's channel breakdown — the stock closed below its rising channel with RSI under the midline, and 460-480 continues to be the zone to watch on further weakness, with 520-540 as the level that would need reclaiming to negate the setup. A support break followed by a reversal candle at the same zone doesn't confirm a reversal by itself — that only comes once price closes above the candle's high. Disclaimer:This is for educational purposes only and is not investment advice. Please consult your financial advisor before making any investment decisions. SEBI Registered Research Analyst — INH000025212.