Stories
Nifty Nears Final Capitulation Phase with Reversal Target at 23,800
C
CNBC TV18•08-10-2026, 16:15
Nifty Nears Final Capitulation Phase with Reversal Target at 23,800
- •Rohit Srivastava states that the Indian stock market is approaching the final stage of its current sell-off as sentiment and positioning indicators reach extreme levels.
- •Key support levels for the Nifty are identified at 22,180 and 21,780, with a potential rebound targeting the 23,500-23,800 zone upon reversal.
- •The correction has now spread from largecaps and midcaps to smallcap and microcap stocks, marking the final segments of the momentum cycle.
- •A potential weakening of the US dollar and a drop in US bond yields could act as a crucial trigger for a broader emerging market reversal.
- •Long-term investment portfolios remain relatively protected due to diversified exposure, while short-term trading positions have been closed out awaiting clear signals.
Key Questions Answered
Rohit Srivastava identified the primary support level for the Nifty around 22,180, which is close to the April low and aligns with his Fibonacci calculations. If that level fails to hold, he expects the next support level to be near 21,780.
Once the market confirms a reversal, Srivastava expects an initial rebound and recovery leg to lift the Nifty index back toward the 23,500 to 23,800 zone.
Bearish positioning in global bonds, the euro, and the Swiss franc has reached extreme levels, and a reversal in these assets could weaken the US dollar. This shift would reduce pressure on emerging markets like India, with US bond yield interventions acting as a potential trigger.
