- Nifty fell 279 points to 23,118, its lowest since April 6, 2026, amid rising oil prices
- Nifty declined 474 points from the day's high, with intense selling towards market close
- Nifty breached key support at 23,172, signaling a clear downtrend and intensified selling
The Nifty continued its downward journey on Tuesday, falling 279 points to close at 23,118, its lowest level since April 6, 2026 amid surging oil prices. From the day's high of 23,592, Nifty declined 474 points, with selling pressure intensifying towards the close. The index also lost 54 points during the Closing Auction Session (CAS), further deepening the decline. Tuesday's fall completely erased Friday's recovery and left the benchmark index on a distinctly weak footing.
Vinay Rajani, Senior Technical Research Analyst at HDFC Securities, said the technical setup remains firmly bearish, with selling momentum intensifying amid broad-based market weakness.
"From a technical perspective, the index remains in a clear downtrend, with selling momentum intensifying amid brutal, broad-based market weakness. Nifty has breached the crucial support level of 23,172, which corresponds to the 61.8% retracement of the rally that began in April 2026 and continued until early August 2026," Rajani said.
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Hariselvan Radhakrishnan, Founder & CEO of HST Wealth, said the technical picture has weakened further after Nifty decisively breached the 23,300 support level. "A sustained break below 23,000 could expose the index to further weakness towards 22,800, while 23,300–23,500 is likely to act as the first resistance band on any recovery," Radhakrishnan said.
Sudeep Shah, Vice President – Technical and Derivatives Research at SBI Securities, highlighted the weak market structure, noting that Nifty is currently trading around 5% below its 200-day EMA and 4% below its 100-day EMA. With RSI at 22.23, the index is deep in oversold territory. However, the technical setup suggests that oversold readings have so far failed to trigger a meaningful reversal, with momentum indicators continuing to point towards further weakness.
Bank Nifty
Bank Nifty also ended sharply lower, falling 812 points, or 1.43%, to slip below the 55,800 level. The index opened higher but gradually weakened as sellers took control, with the decline accelerating after it broke below the 56,200–56,100 zone.
According to Ponmudi R, CEO of Enrich Money, 55,700–55,500 is the immediate support zone for Bank Nifty. A break below this range could drag the index towards 55,200–55,000. On the upside, the 56,200–56,100 zone, which gave way during Tuesday's breakdown, is now expected to act as immediate resistance. The next major hurdle is placed at 56,700–56,800.
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