Nifty gains 134 points, but remains below key averages

Nifty 50 closed 133.80 points higher at 22,555.75 (+0.60%) on Monday, supported by Consumer Durables, FMCG and PSU Banks. Sensex gained 0.66% to 72,382.47, while Bank Nifty rose 0.48% to 54,714.10. Market breadth improved: 32 Nifty stocks advanced against 18 declines. Consumer Durables led sector gains at +2.31%, followed by FMCG (+0.99%) and PSU Banks (+0.87%). Healthcare (-1.01%) and Pharma (-0.83%) remained weak. Despite the recovery, Nifty continues to trade below its 20-day average of 23,158 and 50-day average of 23,580. RSI at 28 indicates an oversold zone, but an oversold reading alone is not a confirmation of a trend reversal. Key levels for Tuesday - Nifty: Support 22,428 / 22,300; resistance 22,653 / 22,750 - Bank Nifty: Support 54,326 / 53,937; resistance 55,148 / 55,581 - Sensex: Support 71,938 / 71,493; resistance 72,730 / 73,077 The Nifty option chain shows 22,000 as the maximum put OI and 23,000 as the maximum call OI, with PCR at 0.90 for the 6 October series. Market view: The day's positive close provides some relief after recent weakness, but the broader technical structure remains cautious until Nifty sustains above the near-term resistance zone. Learning outcome: Investors should combine price action, moving averages, RSI, market breadth and option positioning rather than relying on a single indicator when assessing a market reversal.