The Nifty 50 index opened lower on Monday and remained under selling pressure during the early part of the session. The index slipped below its 20-DMA and also moved below the range of Wednesday, August 12, 2026 to hit an intraday low of 24,226.95.
Buying emerged from lower levels during the middle of the session, helping the index recover and touch an intraday high of 24,360.10. However, the recovery failed to sustain as selling pressure returned at higher levels. The Nifty eventually settled below the 24,300 mark at 24,287.65, down 78.35 points or 0.32%.
Lower High and Lower Low Structure Continues
Monday's price action resulted in the formation of a red-bodied candle with a long lower shadow and a small upper shadow, indicating buying interest at lower levels but continued supply on the upside.
More importantly, the index continued to form a lower high and lower low on the daily chart, keeping the near-term structure under pressure.
The Nifty had managed to hold above its 20-DMA and the 38.2% retracement level for the previous four sessions. However, Monday's close below these levels suggests that the ongoing corrective phase remains intact. The index is now trading just 0.98% above its 50-DMA.
24,190-24,103 Becomes Key Support Zone
On the downside, the 50% retracement level of the recent upswing, placed around 24,190, is the first important support. This is followed by the 50-DMA at 24,103. Together, the 24,190-24,103 zone will be crucial for the index in the coming sessions.
A decisive close below this support zone would weaken the technical structure further.
However, the current corrective swing is already 10 trading sessions old and has retraced only a little over 38.2% of the sharp six-session rise from the July 24 low to the August 3 high. The relatively slow pace of the decline suggests that selling pressure has so far remained measured rather than aggressive.
If the 24,190-24,103 support zone holds over the next one or two sessions, the index could see a rebound from these levels.
24,360 Is the Immediate Hurdle
On the upside, Monday's high of 24,360 is the first important level to watch. A sustained move and close above this level would improve the near-term setup and could take the index towards the August 12 high of 24,473.
A sustained move above 24,473 would strengthen the case for the index to resume its broader upswing.
24,103-24,473 Range Holds the Key
Broadly, the Nifty is now positioned within the important 24,103-24,473 zone. A decisive break on either side of this range is likely to provide the next directional cue. Such a breakout could result in a sharp move of around 150-200 points in the direction of the break.
Stock to Watch: Netweb Technologies India
The stock is trading close to the prior pivot of its eight-week cup pattern, while its Relative Strength (RS) line has moved to a new high. An RS line hitting a new high before the stock price does is generally considered a positive technical signal.
All the key moving averages are trending higher and are in a desired sequence. The Bollinger Bands are expanding, and the moving average ribbon remains in an uptrend across multiple time frames. Momentum indicators also remain supportive, with the MACD in bullish territory and the RSI showing strength across time frames.
The stock is now approaching an important breakout level. A move above Rs 5,244 would be positive and could take the stock towards Rs 5,475. A stop-loss can be maintained at Rs 4,990. Sustaining above Rs 5,475 could open the way towards Rs 5,600.
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