# Nifty Oversold, Volatility High

> Nifty may rebound as oversold technicals and RBI policy meet.
- Title: Nifty Oversold, Volatility High · The Economic Times
- Summary: Nifty may rebound as oversold technicals and RBI policy meet. Nifty could rebound this week as oversold technicals and RBI policy decision create volatility.
- Keywords: nifty, volatility, rbi, monetary policy, oversold, technical analysis, market rebound, money, business, High, The Economic Times
- Source: The Economic Times — https://economictimes.indiatimes.com/markets/stocks/news/dalal-street-week-ahead-oversold-nifty-may-rebound-as-volatility-stays-high/articleshow/134654990.cms
- Author: ET CONTRIBUTORS
- Published: 2026-10-03T09:38:00+00:00
- Read time: 1 min
- Topics: nifty, volatility, rbi, monetary policy, oversold, technical analysis, market rebound, money, business
## 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.
## Key takeaway

Nifty could rebound this week as oversold technicals and RBI policy decision create volatility.