The Nifty index crossed the crucial resistance level of 22,800 and settled just below the 23,000 mark on 15 October, signaling an improvement in buying momentum, according to livemint.com. This breakout reflects a strengthening recovery in the benchmark index, which had surged 374 points the previous day to close at 22,997.35, breaking an 11-session trading range.
Jigar S. Patel, Senior Manager of Equity Technical Research at Anand Rathi Share and Stock Brokers, noted that while the breakout is an encouraging technical development, it does not guarantee a complete trend reversal. He highlighted the importance of the index sustaining higher levels and absorbing selling pressure near the next resistance zone between 23,000 and 23,150. Patel also pointed to the hourly Relative Strength Index (RSI) rising above 70 for the first time since August 2026, indicating strong short-term buying momentum but also an overbought condition on the hourly timeframe.
The recent rally in the Nifty is supported by gains in the information technology sector, with Tech Mahindra, Infosys, and TCS among the top performers, as reported by thehindubusinessline.com. Despite early profit booking and a slight pullback on 16 October, the IT sector's strong Q2 results have contributed to the positive sentiment. The Nifty's recovery also reclaimed its 20-day exponential moving average (EMA), a key technical indicator, suggesting renewed investor confidence amid inflation concerns and mixed market cues.
As of the morning session on 16 October, the Nifty opened at 23,065.10 but slipped to 22,936.85, reflecting some profit booking. The index's ability to hold above the 23,000 level and overcome resistance near 23,150 will be critical to confirming the sustainability of the current uptrend, according to Patel. The next key resistance zone remains under close watch by market participants.