Angel One Says Relief Rally Is Not a Reversal — Sell-on-Rise Strategy Intact Until Index Breaks 23,800
By S JHA
Mumbai, March 18, 2026 — Nifty extended its recovery for a second consecutive session on Tuesday, but broking firm Angel One is cautioning clients against reading too much into the bounce — warning that the broader bearish structure remains firmly intact.
In a note shared with clients, Angel One said the index continues to trade within a well-defined descending channel on the hourly chart, maintaining a pattern of lower highs and lower lows that has defined market direction in recent weeks.
Support Holding, But Bulls Yet to Prove Themselves
The 23,150 zone has emerged as a strong demand floor, with Angel One noting “repeated buying tails suggesting emerging support and early signs of bearish exhaustion.” Monday’s session had produced a “Piercing Line” bullish reversal candlestick formation, and follow-through buying on Tuesday has extended the rebound toward the mid-channel level of approximately 23,400.
However, Angel One is explicit that this is a relief rally — not a structural reversal.
“The rebound from the lower band has pushed the index toward the mid-channel (~23,400), indicating a relief rally rather than a structural reversal,” the note states.
The Line in the Sand: 23,600–23,800
For any meaningful shift in market character, Angel One says a decisive breakout above the 23,600–23,800 zone is essential. Until that level is cleared convincingly, the firm’s recommended approach remains a sell-on-rise strategy, with consolidation likely as long as 23,150 holds as support.
Market breadth was constructive during Tuesday’s session, with most sectoral indices closing in the green. IT and FMCG, however, lagged and capped the upside — limiting the rally’s scope.
Options Market Signals the Battleground
Heading into the monthly expiry, options data reinforces the technical picture. Angel One notes that the 23,500–23,300 put strikes carry decent open interest concentration, suggesting immediate downside support in that zone. On the upside, significant open interest is clustered at the 23,800–24,000 call strikes — a level likely to act as an intermediate resistance hurdle for the index.
With the oversold setup offering some near-term support, Angel One acknowledges the bounce may extend further. But the message to clients is clear: until Nifty reclaims 23,800 on a closing basis, the trend favours the bears.
(Disclaimer: This article makes no recommendation for any kind of trades in the stock market.)
Follow The Raisina Hills on WhatsApp, Instagram, YouTube, Facebook, and LinkedIn
