Nifty Falls for Eighth Straight Week: Why the 22,000–22,200 Zone Could Hold the Key

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By S. JHA

The Nifty ended another bruising week with its eighth consecutive weekly decline, but the index is now approaching a long-standing technical support zone that could determine whether the current sell-off extends further or gives way to a near-term rebound.

Mumbai, October 1, 2026 — The Indian equity market remains under pressure, with the Nifty extending its losing streak to eight weeks. Yet after a prolonged decline, technical analysts are increasingly focused on what lies beneath the current price action: a support band that has held on several previous occasions and could once again become a battleground between buyers and sellers.

According to an Angel One market update, the Nifty is approaching the 22,000–22,200 zone, where a rising trendline has previously provided support on three occasions.

The index closed below that upward-sloping trendline in the latest session. However, the brokerage’s technical assessment suggests that a decisive and sustained break below the broader support band would be needed to confirm further deterioration.

Until that happens, the possibility of demand emerging around these levels remains.

Nifty closes at 22,421 after another volatile week

The curtailed trading week began on a weak note, with the Nifty falling sharply on the opening day. Buyers showed some resilience during the following two sessions, suggesting that demand was emerging at lower levels.

That recovery, however, proved insufficient to alter the broader trend.

Selling intensified during the final session, with the index falling more than 400 points intraday before recovering a substantial portion of its losses. The Nifty ultimately settled at 22,421, down 3.11% for the week.

The decline marked the index’s eighth consecutive weekly loss, underscoring the persistent weakness that has dominated recent market action.

Why the 22,000–22,200 zone matters

The technical significance of the current level goes beyond a conventional trendline.

Angel One’s analysis points to a rising trendline that has defended the Nifty on three previous occasions. That trendline is currently positioned in the 22,200–22,000 region.

While the latest close below the trendline is a warning sign, the analysis argues that traders should look for a conclusive breakdown of the wider support band before assuming that the next leg of the decline has begun.

In other words, the market is now at a level where the response from buyers could be particularly important.

A sustained defence of the zone could lead to a rebound, while a decisive breakdown could signal that the longer-standing bullish technical structure is weakening.

Point & Figure charts offer another warning level

The same area assumes added importance on the Point & Figure (P&F) charts.

On the 1% P&F chart, the 22,000–22,200 region is close to the lows of a bullish Anchor Column that has remained active since early 2025.

Angel One notes that a break below the lows of this Anchor Column, around the 22,250 level, would invalidate a major bullish setup.

The significance lies in the rarity of such a breakdown. According to the analysis, this would represent the first comparable break below such a major setup since the lows recorded during the Covid period.

That makes the zone an important technical marker for the market’s medium- to long-term structure.

Oversold signals raise the possibility of a bounce

The Nifty’s prolonged decline has also pushed several technical and market-breadth indicators into oversold territory.

That does not, by itself, establish that a bottom has been formed. Oversold conditions can persist during strong downtrends. However, when they occur close to a well-established support zone, they can increase the possibility of a short-term recovery.

Angel One’s assessment therefore points to the possibility of a bounce in the coming sessions, given the Nifty’s current proximity to the identified support band and the oversold readings across several indicators.

The key question for traders is whether such a bounce, if it occurs, develops into a meaningful recovery or remains a temporary respite within the broader downtrend.

Auto stocks take a hit

The broader market weakness was particularly visible in the automobile sector during the latest session.

Following a weak set of auto-sales numbers and amid selling across the broader market, auto stocks came under significant pressure. Bajaj Auto, for instance, fell more than 7% intraday, while the sectoral index declined by more than 3%.

The sharp moves added to the risk-off tone across domestic equities and highlighted the breadth of selling beyond the benchmark index.

Global markets remain mixed

Overseas markets provided little uniform direction.

Asian markets ended the session higher, while European markets were trading lower, resulting in a mixed global backdrop for Indian equities.

For the Nifty, however, domestic technical levels may prove more consequential in the immediate term. After eight consecutive weeks of losses, the index has arrived at a zone that has previously attracted buyers.

The 22,000–22,200 support band is therefore likely to remain a closely watched level. A sustained defence could open the door to a recovery, while a decisive breakdown would raise questions about the durability of the longer-term bullish structure identified on the Point & Figure charts.

For now, the market remains caught between persistent selling pressure and increasingly oversold conditions — making the next few sessions particularly important for determining the direction of the next move.

(This article is only for informational purposes. No trades suggested here.)