Trading Plan: Can Nifty 50 defend 24,500, Bank Nifty sustain above 200 DEMA?

Nifty Trading Plan for September 3

The Nifty 50 failed to hold follow-through buying due to profit booking and closed moderately lower, while the Bank Nifty underperformed the benchmark Nifty 50. The Nifty 50 took support at 24,500 on Tuesday, which is key for an upmove toward the 24,700–24,800 zone; however, falling below it can open the door to 24,400, the upward sloping trendline support. Meanwhile, the Bank Nifty needs to hold 53,578 (200-day EMA), as below it, 53,400 is the immediate level to watch, followed by 53,000. However, sustaining above it can drive bulls toward 54,400, followed by 54,900, experts said.

On September 2, the Nifty 50 declined 45 points to 24,580, while the Bank Nifty shed 341 points to 53,661, but the market breadth continued to favour bulls. About 1,737 shares advanced compared to 1,043 shares that corrected on the NSE.

Nifty Outlook and Strategy

Ashish Kyal, CMT, Founder and CEO of Waves Strategy Advisors

Post a continuous sell-off over the past week, Nifty took a breather at the start of this week and almost retraced 50% of the prior week's fall. In the previous session, Nifty found resistance at the 100-day Simple Moving Average situated near 24,700–24,750 levels, and we saw a sharp reversal of nearly 200 points on the downside. For any short covering, a close above the 100-day SMA is required.

On the daily chart, Nifty appears to be forming a Topping Head & Shoulders pattern. A break below 24,340 is required for confirmation of the pattern. The next few days of price action are crucial, as they will help confirm the bigger picture.

The index failed to sustain at higher levels amid continuous selling by FIIs. For now, a break below 24,520 can extend this sell-off towards 24,420 levels. On the upside, an hourly close above 24,670 is a must for any short-term pullbacks.

Key Resistance: 24,670

Key Support: 24,340

Strategy: Short positions can be created below 24,520 with a stop-loss of 24,620 and target of 24,420, followed by 24,340 levels.

Preeti K Chabra, Founder of Trade Delta

The Nifty opened on a positive note, extending Monday’s gains to test an intraday high of 24,756, but faced strong resistance near the 23.6% Fibonacci retracement level of 24,742, drawn from the June 30 high of 25,669 to the April 7 low of 21,743. Selling pressure at this zone dragged the index lower, resulting in a bearish daily candle. It closed below the 20-SMA at 24,695 (middle Bollinger Band). The inability to sustain above 24,700 highlights weak follow-up buying and keeps near-term sentiment cautious. The index continues to trade below the 40-EMA at 24,800, and until these key resistance levels are decisively breached, selling pressure at higher levels is likely to persist.

The daily RSI at 44.3 remains below its signal line, confirming increasing bearish momentum. On the derivatives front, the option chain shows unwinding in both in-the-money Calls and Outs, offering no directional clarity.

Key Resistance: 24,700, 24,800

Key Support: 24,400, 24,300

Strategy: Adopt a sell-on-rise approach. Short Nifty futures near cash price of 24,700 with a downside target of 24,400 and a stop-loss at 24,800.

Bank Nifty - Outlook and Positioning

Ashish Kyal, CMT, Founder and CEO of Waves Strategy Advisors

On the daily chart, Bank Nifty continued to witness systematic sell-off in the form of a lower high–lower low pattern, suggesting that bears are tightening their grip with each passing day. Over the past 11 trading sessions, not a single candle has given a close above the prior day’s high, indicating weakness in the index. Prices have already retraced 38.2% of the prior rise that started in March 2025. The next crucial support is near 53,246 levels. Daily RSI is trading near 30 for the first time since January 2025, so the possibility of sudden pullbacks cannot be ruled out. However, one can use such pullbacks as shorting opportunities as long as there is no close above the prior day’s high.

One can continue to use a sell-on-rise method. On the upside, 54,170 is the nearest resistance. A break above it can lead to some pullbacks.

Key Resistance: 54,170

Key Support: 53,246

Strategy: Use pullbacks towards 53,750–53,800 as a selling opportunity with targets of 53,450, followed by 53,246, and a stop-loss of 53,950.

Preeti K Chabra, Founder of Trade Delta

The Bank Nifty opened mildly positive, extending Monday’s gains to test an intraday high of 54,160, where it faced strong selling pressure, resulting in a bearish candle. On the hourly chart, it closed below the 20-SMA at 53,868 (middle Bollinger Band) and continues to trade below the 40-EMA at 54,202.

On the daily chart, the index is trading below the 38.2% Fibonacci retracement level of 54,392, drawn from the July 2 high of 57,268 to the April 7 low of 49,156. Until these key resistance levels are decisively breached, selling pressure at higher levels is likely to persist.

The daily RSI at 30.72 remains below its signal line, confirming increasing bearish momentum. On the derivatives front, the option chain is neutral, offering no directional clarity.

Key Resistance: 54,200, 54,400

Key Support: 53,600, 53,400

Strategy: Adopt a sell-on-rise approach. Short Bank Nifty futures near cash price of 54,200 with a downside target of 53,600 and a stop-loss at 54,400.

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