The bullish momentum remained intact following the last-hour recovery on September 18, pushing the Nifty 50 beyond 25,400 and raising hopes for a move toward the June swing high — especially after the Federal Reserve resumed its rate cut cycle, signalling two more cuts in 2025. With today’s gains, the index climbed above the 78.6 percent Fibonacci retracement level (from the June high to the August low). This, along with strong technical and momentum indicators, as well as the VIX ending at an all-time closing low, lifted overall market sentiment.
According to experts, intermittent consolidation cannot be ruled out given the healthy rally this month. If the index sustains above 25,400, the next targets to watch would be 25,500–25,550, followed by 25,669 (the June high). On the lower side, 25,330 — the low of today’s candle — is expected to act as an immediate and crucial support zone.
The Nifty 50 opened strong at 25,441, followed by some profit booking in the afternoon. The index hit the previous day’s close as the intraday low and then decisively bounced back in the last hour of trade to close at 25,424, up 93 points.
The index formed a small red candle with a long lower shadow on the daily charts, indicating strong buying interest at lower levels. This pattern also resembles a Bearish Hanging Man candlestick pattern — a potential bearish reversal — but confirmation is needed from the following candle.
“A weakness below the low of the pattern at 25,330 could confirm the bearish reversal. However, if Nifty manages to surpass the high of the pattern at 25,450, the market action could not only negate the bearish pattern but also open up more upside potential,” said Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities.
Overall, according to him, the short-term uptrend of the Nifty remains positive, but the market is showing signs of strong overhead resistance around the 25,500 level.
“One may expect high volatility at higher levels in the short term. The near-term resistance is placed at 25,700, and immediate support is placed at 25,300,” he added.
The weekly options data also signalled 25,500 as an immediate resistance for the Nifty 50, with support in the 25,400–25,300 zone.
The maximum Call open interest was seen at the 26,000 strike, followed by the 25,500 and 25,800 strikes, with maximum Call writing at the 25,800, 25,500, and 25,450 strikes. On the Put side, the 25,000 strike holds the maximum open interest, followed by 25,400 and 25,300, with the most Put writing seen at 25,400, 25,000, and 25,450 strikes.
Bank Nifty Extends Uptrend For 12th Day
The benchmark banking index Bank Nifty extended its uptrend for the 12th consecutive session, rising 234 points to close at 55,727, and is gradually inching toward the 56,000 mark. The index also formed a pattern similar to the Nifty during this upward move, which needs to be watched closely in the next session for confirmation.
Technically, the index is trading comfortably above its key moving averages, which have now started to slope upwards — a sign of strengthening trend dynamics. Additionally, the daily RSI has surged past the 60 level for the first time since July 2025, indicating a pickup in bullish momentum and improving market breadth within the banking space.
“This setup suggests that Bank Nifty may continue its pullback rally in the near term. Going ahead, the zone of 56,000–56,100 will act as an important hurdle for the index. Any sustainable move above 56,000 could lead to a sharp rally toward 56,600, followed by 57,000 in the short term,” said Sudeep Shah, Head – Technical Research and Derivatives at SBI Securities.
On the downside, the 55,400–55,300 zone will act as a crucial support, he added.
Meanwhile, the India VIX, the fear index, hit a new all-time closing low on Thursday, falling 3.54 percent to 9.885, signalling more comfort for bulls and low volatility in the short term.
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