Dance of Death on Dalal Street: Nifty RSI Slips Below 25

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With Nifty RSI under 25, markets face a deadly mix of Trump shocks, broken supports, and panic selling on weekly expiry.

By S JHA

Mumbai, January 20, 2026 — Absolute mayhem butchered the markets on Tuesday. Trumpian disruptions overhang and the markets went hurtling down. Technical supports caved in easily. The stock market bloodbath came on a day of Nifty weekly expiry, causing cascading selloffs.

Chartists had yesterday warned that 25500 was a key pivot. A breakdown will unleash a carnage. The script played out. Supports sank. Indices went sinking. The market lacked leadership.

Scale of selloff could be gauged from the mauling of LTI Mindtree. Tracking the Q3FY26 results, the IT counter took a sever beating. The stock was down eight percent in early sessions.

Chartists claim that the RSI signal for the Nifty point out to an oversold zone. But catching falling knives has been a risky business in the past. Chartists warn against calling the market bottom.

The labour codes-induced gratuity burden is wearing down the quarterly numbers of companies. Trump is raising a new red flag on a daily basis. Technical charts may seem secondary when cues are overwhelmingly negative.

“On the daily chart, prices have slipped below the November swing low and also closed below the golden retracement level (61.8%) of the entire upmove from the September swing low near 24600,” said Angel One in a market note shared with clients.

The Delhi-based brokerage also stated that “the RSI Smoothened has entered the oversold zone below 25 for the first time since August; however, considering the broad-based nature of the sell-off, attempting to catch the bottom may be premature.” “From a levels perspective, prices are now at a knocking distance of the long-term 200-DSMA, with 25100–25000 emerging as a crucial support zone for the coming sessions,” it added.

The brokerage house sounded gloomy, saying: “On the flip side, given the sharpness of the recent decline, identifying a precise resistance zone is challenging; nevertheless, the 25500–25600 region is likely to act as a stiff hurdle.”

(Disclaimer: This article makes no recommendation for any kind of trades in the stock market)