From The Economic Times · ET CONTRIBUTORS · · 1m
Nifty Oversold, Volatility High
Nifty may rebound as oversold technicals and RBI policy meet.
In brief
Nifty may rebound as oversold technicals and RBI policy meet. Nifty could rebound this week as oversold technicals and RBI policy decision create volatility. Originally reported by The Economic Times.
Nifty Weekly Loss
The Nifty settled with a weekly loss of 718.55 points (-3.11%) after trading in a wide 862.95-point range.
Technical Weakness
The Nifty violated its 200-week moving average at 22,606.97, the first breach since March 2020.
Oversold Indicators
Weekly RSI stands at 30.86, just above oversold threshold with no divergence against price.
RBI Policy Event
RBI Monetary Policy Committee meets October 5-7 with decision on October 7.
Critical Technical Zone
The 22,200-22,600 region is critical as Nifty tests lower trendline and 200-week MA.
Sector Rotation
Pharma, IT, Auto, Metal, and Media indices inside leading quadrant likely to outperform.
Market Strategy
Traders should remain stock-specific, light on leverage, and disciplined with risk.
Volatility Expectations
Volatility may stay high due to RBI policy decision and technical oversold conditions.
The takeaway
Nifty could rebound this week as oversold technicals and RBI policy decision create volatility.
