Technical View: Nifty bulls gain solid strength after a break, targeting 25,400; Bank Nifty reclaims 50 DEMA

Nifty outlook for September 17

The Nifty 50 bulls regained solid strength after taking a breather for a day, decisively surpassing the crucial 25,150 hurdle and hitting an intraday high of 25,250 with positive market breadth on September 16. According to experts, the ongoing momentum is expected to drive the index towards 25,400, followed by 25,550 and the June high of 25,669 in the coming sessions — provided the 25,000 level continues to hold firmly.

The index sustained above all key moving averages, while momentum indicators further strengthened. The Relative Strength Index (RSI) rose to 63.84, and the MACD showed a strong bullish crossover with a healthy histogram, both indicating continued bullish strength.

The Nifty 50 opened flat but witnessed strengthening bullish momentum as the day progressed, hitting an intraday high of 25,261. It rallied 170 points (0.68 percent) to settle at 25,239, forming a long bullish candle on the daily chart. This signaled a sharp upside breakout above the previous swing high of 25,150 from August 21.

"This is a positive indication and signals that bulls are back in control, following a choppy 6–7 session up-move," said Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities.

According to Shetti, having surpassed the key resistance at 25,150, the Nifty could advance toward the next resistance zone of 25,400–25,500 in the near term. Immediate support is placed at 25,100, he added.

Following Monday’s rally, weekly options data also pointed to 26,000 as the next potential target for the Nifty 50, with key support in the 25,200–25,000 zone.

The 26,000 strike holds the highest Call open interest, followed by the 25,200 and 25,500 strikes, with the most Call writing seen at 26,000, 25,200, and 25,300 strikes. On the Put side, the highest open interest was at the 25,200 strike, followed by 25,000 and 25,100, with maximum Put writing at the same levels.

Bank Nifty

The Bank Nifty also joined the bulls' party by surpassing the 55,000 mark, as well as the 38.2% Fibonacci retracement level (55,130 — calculated from the July record high to the September low). It rose 260 points to close at 55,148, marking the 10th consecutive session of gains. The index formed a bullish candle on the daily chart and reclaimed the 50-day EMA (55,140) for the first time since August 22.

With this move, the Bank Nifty has now crossed all key moving averages, signaling a shift in momentum and an improvement in the overall trend structure.

Momentum indicators are aligning with this bullish narrative. The daily RSI is currently around 55 and continues to rise, indicating growing buying interest. A sustained move above the 60 mark could further validate the strength of the rally.

Overall, the technical setup for the Bank Nifty is turning increasingly constructive, according to Sudeep Shah, Head of Technical Research and Derivatives at SBI Securities. If momentum sustains, the index could be poised for further upside in the near term.

In terms of crucial levels, the 55,500–55,600 zone will act as an immediate resistance, while the 54,800–54,700 zone will serve as crucial support, Shah said.

Meanwhile, India VIX — the volatility index — declined by 1.2% to 10.27, staying near the lower end of the range. This signals a more stable environment and adds to the bullish comfort with reduced market uncertainty.

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