Trading Plan: Can Nifty 50 reclaim 25,400, Bank Nifty surpass 55,600 after Fed interest rate decision?

Nifty Trading Plan for September 18

The momentum picked up further with the Nifty 50 surpassing 25,300 ahead of the Federal Reserve meeting outcome, where the central bank cut rates by 25 bps and signaled two more rate cuts this year. According to experts, the index is likely to move toward 25,400, followed by 25,500-25,600, as long as it holds 25,150-25,000 as support. Meanwhile, the Bank Nifty also strengthened further; hence, immediate resistance is placed at 55,600, as a decisive trade above it could open the door for 56,000-56,150. However, the 55,150 (50-day EMA) can act as immediate support, followed by 54,700.

On September 17, the Nifty 50 climbed 91 points to 25,330, while the Bank Nifty jumped 346 points to 55,493, with the bulls supporting the market breadth. A total of 1,592 shares saw buying interest, against 1,215 shares that were under pressure on the NSE.

Nifty Outlook and Strategy

Nilesh Jain, Head – Technical and Derivatives Research Analyst (Equity Research) at Centrum Broking

The market extended its upward momentum for yet another session, with the Nifty Futures crossing the 25,400 mark, driven by continued short covering. It has been consistently finding support at a rising trendline that connects the recent swing lows, reinforcing the bullish structure. The overall setup remains strong, with a potential move toward 25,600 on the cards.

The base has now shifted higher to the 25,250 levels. Momentum indicators and oscillators have already given a bullish crossover on the daily chart, indicating a strong underlying tone. Given these technical signals, the uptrend is likely to continue, and a buy-on-dips strategy remains advisable.

Key Resistance Futures: 25,510, 25,600

Key Support Futures: 25,360, 25,250

Strategy: Buy Nifty Futures in the range of 25,350-25,400, with a stop-loss of 25,250, targeting 25,600.

Rupak De, Senior Technical Analyst at LKP Securities

The Nifty has been holding above its previous swing high, supported by sustained follow-up buying. Investor sentiment has strengthened notably, as reflected by a 10-point drop in the panic index during the day, indicating growing confidence. Looking ahead, the trend is expected to stay positive as long as the Nifty remains above the 21EMA, currently positioned just above 24,900. On the upside, resistance is placed at 25,400 and 25,500. A decisive breakout above 25,500 could trigger a further rally of 400–500 points.

Key Resistance: 25,500, 25,750

Key Support: 25,150, 25,000

Strategy: Buy Nifty September 23's 25,500 strike Call above Rs 60, with a stop-loss of Rs 40, targeting Rs 100.

Riyank Arora, Technical Analyst at Mehta Equities

Nifty registered a strong breakout above 25,150 and is now holding firm above 25,250, confirming bullish momentum. The RSI (14) at 66 supports the ongoing strength, pointing towards potential upside targets of 25,500 and 25,600. Immediate support is placed at 25,275, and sustaining above this level will be key for further momentum. A move below support could trigger mild weakness.

Key Resistance: 25,500, 25,600

Key Support: 25,275

Strategy: Buy Nifty September Futures at 25,400, with a stop-loss of 25,350, targeting 25,500/25,600.

Bank Nifty - Outlook and Positioning

Nilesh Jain, Head – Technical and Derivatives Research Analyst (Equity Research) at Centrum Broking

Bank Nifty Index Futures extended its winning streak for the sixth consecutive session, driven by strong short covering. It also showed relative outperformance compared to the Nifty index. The index has now approached its resistance at around 55,820 levels in Futures. A decisive breakout above this level could open the door for further upside towards 56,200. On the downside, immediate support is seen at 55,200. Given the recent sharp upmove, a buy-on-dips strategy is advisable, and we expect Bank Nifty to continue outperforming the Nifty in the near term.

Key Resistance (Futures): 55,820, 56,200

Key Support (Futures): 55,360, 55,050

Strategy: Buy Bank Nifty Futures in the range of 55,500-55,600, with a stop-loss of 55,200, targeting 56,200.

Rupak De, Senior Technical Analyst at LKP Securities

Bank Nifty has been sustaining above the falling channel. Besides, it closed strongly above its 50-day EMA, forming a bullish candlestick pattern. The RSI hovering near 60 with a bullish crossover signals strong momentum. The overall outlook remains positive, and traders may continue to adopt a buy-on-dips strategy.

Immediate support is placed at 55,200, while positional support is seen at 54,800. On the upside, resistance levels are positioned at 56,000 and 56,500. Sustaining above the 50-day EMA will reinforce the bullish bias and could pave the way for further gains in the near term.

Key Resistance: 56,000, 56,500

Key Support: 55,000, 54,700

Strategy: Buy Bank Nifty September 55,500 strike Call above Rs 520, with a stop-loss of Rs 440, targeting Rs 660.

Riyank Arora, Technical Analyst at Mehta Equities

Bank Nifty has surged past the key resistance at 55,000 and is comfortably sustaining above it, highlighting strength in momentum. The RSI (14) stands near 60 and rising, while a positive MACD crossover further confirms the bullish undertone. Support is positioned at 54,500; holding above this zone keeps the upside potential intact. On the higher side, the index could test 56,000 and 56,500 in the near term.

Key Resistance: 56,000, 56,500

Key Support: 54,500

Strategy: Buy Bank Nifty September Futures at 55,500, with a stop-loss of 55,000, targeting 56,000/56,500.

Disclaimer: The views and investment tips expressed by experts on Moneycontrol are their own and not those of the website or its management. Moneycontrol advises users to check with certified experts before taking any investment decisions.