Nifty Index Technical Outlook 1st October 2026

Nifty Index remains under strong bearish pressure, with the broader trend firmly favouring bears and the prevailing market structure continuing to support a sell-on-rise strategy. The index faced strong rejection near the 22,775 resistance, followed by sustained selling pressure, indicating that buyers continue to lack conviction at higher levels. The immediate and crucial trend-defining support is placed at 22,550, which remains the key battleground between bulls and bears. A decisive break below 22,550 would reinforce the bearish structure, intensify downside momentum and potentially drag Nifty below the 22,500 psychological mark, opening the door for further selling towards lower support zones. Such a breakdown could also encourage fresh short positions as market sentiment deteriorates. On the other hand, if Nifty successfully holds 22,550 and selling pressure moderates, oversold conditions could trigger short covering. A sustained move above 22,650 would provide the first indication of recovery and could extend the short-covering rally towards 22,700–22,775. However, any recovery below 22,775 should initially be treated as corrective rather than a confirmed trend reversal. Only a decisive and sustained breakout above 22,775 would weaken the prevailing bearish setup. Therefore, the bearish trigger remains below 22,550, while the bullish/short-covering trigger is above 22,650. Overall, the major trend remains strongly bearish, and traders are advised to maintain a cautious approach on long positions. Sell-on-rise remains the preferred strategy, with 22,550 as the critical support and 22,775 as the major resistance.