The Nifty RSI is back below 30 and in the oversold zone.
Oversold does not necessarily mean that the bottom is already in. In previous instances, the Nifty saw a small bounce and then made one or two more lows while the RSI formed higher bottoms. This created a positive—or sometimes triple positive—RSI divergence.
What happened the last time?
In my earlier RSI analysis, I highlighted how positive divergences appeared near several important Nifty bottoms.
Historically, the bottom was generally completed within a few days to two or three weeks. In some instances, the Nifty declined another 2–3% before bottoming. A global or policy trigger often helped start the turnaround.
Nifty50 – Triple Positive RSI Divergence. Major Bottoms.
In simple terms, a RSI Positive Divergence is New lows on Nifty but higher bottoms on Daily RSI.
This setup has worked brilliantly to spot Risk-Reward Entry Points near Bottoms in the last 10 years.
Examples below
— Nooresh Merani (@nooreshtech) April 2, 2026
What to watch now
For now, 23,000–23,200 is an important support zone.
The key signals to watch are:
- The Nifty retesting or making a fresh low
- The RSI forming a higher bottom
- The Nifty crossing previous-day or previous-week highs
An oversold RSI is only an alert—not a confirmation. A positive divergence followed by improving price action would be a stronger sign of a bottom.
Can the Nifty complete its bottoming process over the next two to three weeks? The setup is worth watching.
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Nooresh Merani (INH000008075)
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