Nifty50 Falls 2.36% to 22,600; Angel One Warns of Further Downside Below 22,500

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By S. JHA

Weak market breadth, call option additions and a negative RSI crossover point to continued caution, with 22,180–22,320 emerging as the next downside zone if support breaks.

Mumbai, October 23, 2026 — The Nifty50 index remained under sustained selling pressure through the week, closing at 22,600 after declining 2.36%, according to a market note issued by Angel One. The decline has weakened the near-term technical outlook, with the brokerage advising caution as investors assess whether the index can regain key resistance levels.

The broader market also witnessed widespread weakness, with mid-cap and small-cap indices registering significant declines. The across-the-board sell-off dampened investor sentiment and reflected deteriorating market breadth.

From a technical perspective, the Nifty50 failed to sustain above its 20-day exponential moving average (20-DEMA) after struggling around the level for a couple of sessions. The index subsequently extended its decline towards recent lows.

Angel One noted that the 14-day Relative Strength Index (RSI) had delivered a negative crossover, signalling weakening momentum and reinforcing the need for a cautious approach in the coming week.

According to the brokerage, 22,500 is a crucial support level. A decisive breach could accelerate the decline towards 22,200 on an intermediate basis, with the psychologically important 22,000 mark potentially coming into focus thereafter.

The options data also points to a fragile recovery outlook. Call open interest additions of 3.13 crore, put unwinding of 10.86 lakh and long unwinding in October futures suggest that bullish momentum remains under pressure.

The immediate downside zone is 22,180–22,320 if the index loses the 22,400–22,500 support area.

On the upside, the 20-DEMA, placed around 22,840, is expected to act as immediate resistance. A sustained move above this level would be necessary to revive positive momentum.

If the index clears this hurdle, it could attempt a recovery towards 23,000, followed by 23,150 in the near term.

However, Angel One identified the broader 22,950–23,100 zone as important for repairing the damaged trend. A sustained move above this range would strengthen the case for a more meaningful recovery.

For the coming week, the market’s direction is likely to depend on whether the Nifty50 can reclaim key moving-average resistance or breaks below 22,500. Until stronger buying emerges, the technical setup favours caution, with traders watching support levels closely.