Nifty 50 faces key resistance at 22,800 ahead of Fed decision
The Nifty 50 closed slightly lower on Oct. 28 and must break the 22,800 level to target 23,200, while a failure could keep the index in a 22,500-22,400 support zone.
The Nifty 50 ended the session on Oct. 28 down 0.2 percent as traders awaited the U.S. Federal Reserve’s policy announcement later in the day. Technical analysis shows the index still trading below its major moving averages, indicating a weak broader structure.
Analysts note that the 22,800 level, which aligns with the 20-day exponential moving average, has acted as a barrier for two sessions. A decisive move above this point could open a path toward the 23,200 area, coinciding with the 50-day EMA. Conversely, if the index stalls below 22,800, consolidation is expected, with support likely found between 22,500 and 22,400.
The daily chart displayed a small-bodied bullish candle with a long lower shadow, suggesting indecision between buyers and sellers. The index has defended the midline of the Bollinger Bands for three consecutive sessions but remains under the 20-, 50-, 100- and 200-day EMAs. The RSI slipped to 44.9, staying above its signal line, while the MACD stayed above the reference line but showed a contracting histogram for six sessions.
Option data reveal the 23,000 strike holding the highest call open interest, marking a potential short-term resistance, while the 22,500 strike leads put open interest, indicating a possible support level. The Nifty put-call ratio rose to 1.07, reflecting a modest shift toward bullish sentiment.
The India VIX fell to 16.24, extending its decline but staying in an elevated range, suggesting continued caution among market participants.
Overall, technical indicators point to continued consolidation with a weak undertone, and a break above 22,800 will be critical for any upward momentum.