A V-shaped Thursday recovery saved the index from deeper losses, but analysts warn that bullish patterns on the daily and weekly charts need confirmation before the downtrend can be called over.
By S. JHA
Mumbai, April 2, 2026 — The Nifty 50 closed the week with a marginal loss of approximately 0.47%, settling just above the 22,700 mark — a number that understates the turbulence of the five sessions that produced it.
The week opened with a decline of more than 500 points on Monday. Tuesday brought a sharp recovery that retraced the entire loss, before the upmove fizzled at higher levels. Thursday delivered another 500-point drop in the first half of trade, before a V-shaped recovery in the afternoon session pulled the index back to near-flat by close.
The net result: minimal movement on the scoreboard, significant stress in the price action.
WHAT THE CHARTS ARE SAYING
Analysts at Angel One, in their weekly technical note, identified two pattern formations that merit attention — though both carry a caveat.
On the daily chart, Nifty has formed a “Meeting Lines” pattern. On the weekly chart, a small bullish-bodied candle with a long lower shadow is visible. Both formations indicate a potential pause in the current downtrend.
The qualification, however, is critical.
“These formations would require confirmation through follow-up buying in the coming sessions,” Angel One said.
In technical analysis, a pause pattern without confirming momentum is not a buy signal. It is a watch signal.
RSI AT POST-COVID EXTREMES
The more arresting data point from the indicator side is the RSI reading. The smoothened RSI is currently below the 7 mark — placing it among the lowest readings recorded in the post-COVID phase of Indian equity markets.
Deeply oversold RSI levels can precede sharp mean-reversion bounces, but they can also persist through extended bear phases. On their own, they are a necessary but not sufficient condition for a bottom call.
THE SUPPORT STRUCTURE
Angel One’s note laid out the technical support architecture clearly.
Nifty has been consolidating within the 23,200–22,200 range over recent sessions. Multiple gap zones within this band form what analysts refer to as a “Common Gap” area — typically associated with a consolidation phase following volatility. This zone is expected to act as immediate support.
Below it, the next significant support band sits between 22,000 and 21,700. This zone carries additional structural weight: it coincides with last year’s April bottom and the 200-week moving average — a confluence that makes it, in the firm’s assessment, a strong long-term support floor.
On the upside, Angel One identified 23,000 as the first meaningful line of resistance. A sustained move above that level would be “the first sign of strength,” the firm said.
SECTOR SNAPSHOT: IT STANDS APART
Against a weak broader market backdrop, information technology stocks were the week’s standout performers. The sectoral index rose more than 2.5% on the day, diverging sharply from the broader index’s trajectory. The outperformance likely reflects a combination of defensive rotation and currency tailwinds, with the rupee’s movement against the dollar remaining a key variable for IT earnings.
THE GLOBAL OVERLAY
Domestic technicals are only part of the picture. Global markets remain in a state of headline-driven uncertainty, with sentiment swinging on geopolitical developments.
Escalation news triggers fresh selling pressure. Any signal of ceasefire or de-escalation — however tentative — provides relief to risk assets. In that environment, Indian equities are not trading purely on fundamentals or technicals. They are trading on news flow that is, by definition, unpredictable.
For the coming week, the market’s ability to build on Thursday’s V-shaped recovery — or its failure to do so — will be the first test of whether the Meeting Lines pattern and the oversold RSI are pointing toward a genuine base, or merely a pause before the next leg lower.
(Disclaimer: This article makes no recommendation for any kind of trades in the stock market.)
‘Trump Signature Is Worthless’: Iran Scholar on Hormuz Power
Follow The Raisina Hills on WhatsApp, Instagram, YouTube, Facebook, and LinkedIn
