Nifty Falls Below Supports, RSI Oversold, MACD Bearish
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- Nifty slipped below its 50‑week and 100‑week moving averages, approaching a critical support band near 22,450‑21,700.
- RSI on the weekly chart is 27.11, placing the index in oversold territory without bullish divergence.
- MACD remains bearish, sitting below its signal line and showing negative momentum.
- Nifty Bank Index rolled inside the weakening quadrant, alongside Auto and Midcap 100 indices, though Midcap 100 shows improving relative momentum.
- Nifty Services Sector Index fell into the lagging quadrant, with Realty and IT also languishing.
- Media Index entered the improving quadrant, indicating relative strength against the NIFTY500.
- FMCG Index also moved into the improving quadrant, suggesting outperformance.
Why it matters: Investors who trim exposure or stay in cash can limit losses as the Nifty’s break of short‑term support and bearish indicators suggest further downside, while traders holding aggressive longs risk deeper drawdowns amid expected volatility. Meanwhile, Media and FMCG sectors show relative strength, offering selective opportunities for disciplined players.
