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According to Sudeep Shah of SBI Securities, the 23,520-23,550 zone is likely to remain an important resistance area. A sustained move above 23,550 could extend the ongoing pullback towards 23,700 in the short term. By Meghna Sen September 21, 2026, 6:38:06 PM IST (Published) 3 Min Read The gradual recovery in the Indian equity market continued for the fourth consecutive session on Monday, with the Nifty50 closing 67 points higher in a range-bound session.
After a largely flat start, benchmark indices remained resilient as buyers maintained a modest advantage through most of the session. Sustained buying support at lower levels helped the indices hold on to their gains despite intermittent volatility, with the Nifty forming higher lows during the day. The Nifty50 closed above the 23,400 mark, keeping the near-term outlook constructive amid improving investor sentiment and broad-based participation across sectors.
Among Nifty constituents, Eternal and HCL Technologies were the top gainers, while Bharti Airtel and Adani Ports emerged as the biggest laggards. On the sectoral front, Nifty Pharma, Healthcare and Realty indices outperformed, while Nifty Metal and IT ended among the weakest performers. In the broader market, the Nifty Midcap 100 and Nifty Smallcap 100 indices remained range-bound and eventually closed in negative territory.
What is driving the market recovery? Indian equities could extend their recent recovery, supported by softer Brent crude prices, improving global markets and resilient domestic fundamentals, said Siddhartha Khemka of Motilal Oswal. Brent crude has eased to around $101 a barrel from recent highs, providing some relief to oil-importing economies such as India.
Moody's has also raised its FY27 GDP growth forecast for India to 7% from 6%, citing the economy's resilience despite global and geopolitical challenges. Strong tax collections are another positive signal for domestic economic activity. Net direct tax collections rose 13% year-on-year to ₹12.12 lakh crore as of September 17, supported by robust advance-tax payments.
However, Khemka said the near-term market trend will depend on whether the improvement in global cues can be sustained. US bond yields remain elevated, with the 10-year Treasury yield near 5%, while India's 10-year government bond yield has risen to around 7%, keeping financial conditions relatively tight. The rupee is also trading near 96 to the US dollar, although further moderation in crude prices could provide some relief.
Nifty outlook: Key levels to watch Nagaraj Shetti of HDFC Securities said the 23,600 zone remains an important resistance level for the Nifty. On the downside, the index could find support around 23,200 during the week. Osho Krishan of Angel One sees immediate support in the 23,300-23,270 range, followed by a stronger support zone around 23,123-23,100.
On the upside, 23,500-23,580 is likely to act as a key hurdle, with a decisive move above this range potentially strengthening the near-term setup. Sudeep Shah of SBI Securities said the 23,520-23,550 zone is likely to remain an important resistance area. A sustained move above 23,550 could extend the ongoing pullback towards 23,700 in the short term.
On the downside, 23,330-23,300 is seen as a crucial support zone. A break below 23,300 could weaken the near-term structure and signal a resumption of the corrective trend. Rupak De of LKP Securities said the Nifty has staged a slow recovery after finding support around the previous swing low on the daily chart.
Falling crude oil prices have also been supportive for Indian equities, he said. De expects sentiment to remain positive in the near term, with 23,760 emerging as a potential upside level and 23,300 as the key support zone. Note To Readers Disclaimer: The views and investment tips expressed by investment experts on CNBCTV18.com are their own and not that of the website or its management.
CNBCTV18.com advises users to check with certified experts before taking any investment decisions. Home Market News Nifty Outlook for September 22: Analysts see 23,500 as key resistance after fourth straight gain
Source: CNBC TV18
