Technical View: Bulls eye Nifty above 23,500 as bearish momentum eases; VIX sinks to over 8-month low, 20…

As per the latest business developments, The Nifty 50 recouped all of the previous day's losses and ended half a percent elevated on September 23. Notably, after struggling during the past two sessions, the index finally closed above its 10-day EMA (23,433) for the first time since August 25, although it remained below other key moving averages, including the 20-, 50-, 100- and 200-day EMAs.

Momentum indicators additionally appear to be gradually aligning with the upside. The RSI rose to 40.25, though it stays below the 50 mark, with a positive crossover. The Stochastic RSI has maintained its bullish crossover since September 16 and keeps show an upward bias. In the meantime, the MACD is on the verge of a positive crossover, although it stays below the zero line, with the red histogram contracting for the sixth consecutive session. Together, these indicators point to an easing of bearish momentum and improving near-term sentiment.

Additionally, Brent oil futures have declined from their recent swing high of around $110 a barrel to hover near $99 a barrel, providing some backing to the market.

Hence, as per specialists, if the index manages to defend the 23,400–23,300 zone over the upcoming sessions, a further upward move towards 23,500–23,600 cannot be ruled out. Sustaining marks above 23,600 could gain the possibility of a move towards the 23,800–25,000 zone. That stated, the crucial backing stays at 23,100, the recent swing low.

The Nifty 50 opened elevated and remained in positive territory throughout the session, ending 118 points, or 0.5 percent, elevated at 23,447. On the daily charts, the index formed a bullish candle within the previous day's red candle, indicating that buyers remained active through most of the session despite range-bound trading.

"Today's price action is a positive indication and signals chances of further advance in Nifty towards the important resistance, as per change in polarity, around the 23,600 level," stated Nagaraj Shetti, Senior Technical Research Market observer at HDFC Securities.

According to him, a decisive breakout above 23,600 could open the door to renewed buying in the market. That stated, any dips towards the 23,250 backing level could provide a buying opportunity.

The monthly options data suggested that the 23,500 strike, where the maximum Call open interest is concentrated, could act as the immediate key resistance for the Nifty 50. The 23,800 strike, which has the next-highest Call open interest, could be the next hurdle for the index.

On the other hand, the 23,000 strike, where the maximum Put open interest is placed, could act as crucial backing for the index. The 23,400 and 23,300 strikes, which have the next-highest Put open interest, could provide immediate backing.

In the meantime, the India VIX, the market's fear gauge, eased sharply by 5.93 percent to 10.345, its lowest closing level since January 7, 2026. The index extended its slide for the sixth consecutive session, signalling greater comfort among traders at large and relatively stable market conditions.

The banking index additionally rebounded and recovered all of its previous day's losses, rising 333 points, or 0.59 percent, to 56,549. Notably, after struggling for four sessions, the index finally settled above its 10-day EMA and appears poised for a move towards the 20-day EMA (56,719) and then the 50-day EMA (57,000), which additionally coincides with the high of the long red candle formed on September 15. These are the next key resistance marks.

The RSI advanced to 46.25 with a positive crossover, while the MACD moved very close to its signal line, with the histogram contracting for the sixth consecutive session. This indicates that bearish momentum is easing.

The banking benchmark formed a positive candle without a softer wick, indicating sustained buying traction from the start of the session. That stated, the index has been trading within a sideways band for the past nine sessions, pointing to continued indecision at current marks. A decisive breakout in either direction will be crucial to establish the next directional move.

"The 56,000–55,900 zone will act as a crucial backing area. A sustained breach below 55,900 could revive selling pressure and drag the index towards 55,500 marks," stated Sudeep Shah, Vice President – Technical & Derivatives Research at SBI Securities.

On the upside, 57,000–57,100 is likely to act as the immediate hurdle. A sustained move above 57,100 could trigger a fresh bullish move and propel the index towards the 57,600 level, he further noted.