Trading Plan: Can Nifty 50 sustain above 50 DEMA, Bank Nifty break past 10 DEMA?

Nifty Trading Plan for September 10

The Nifty 50 and Bank Nifty stayed higher for the fifth consecutive day, but the former outperformed the latter, on September 9. In the near term, if the Nifty 50 holds its immediate support of the 50-DEMA (24,791), the upward journey toward 25,000 and beyond cannot be ruled out. However, below this, the 24,700 level could act as a crucial support. Meanwhile, the Bank Nifty failed to hold above its 10-DEMA (54,260) for the fourth straight session on a closing basis. Sustaining above this level can open the door for the 54,600–54,850 range. Until then, consolidation may continue, with immediate support at 54,000, followed by 53,700–53,600 as the next support zone, experts said.

On September 9, the Nifty 50 climbed 95 points to 24,869, while the Bank Nifty rose 29 points to 54,216. The market breadth turned slightly negative, with about 1,424 shares under pressure against 1,350 shares that gained.

Nifty Outlook and Strategy

Nandish Shah, Senior Technical and Derivative Analyst at HDFC Securities

Nifty rose for the fifth consecutive session, closing at a two-week high. By closing above 24,791, Nifty managed to reclaim its position above the 50-DEMA. It has now decisively surpassed its 5-, 10-, 20-, and 50-day DMAs, a bullish signal on short-term charts.

Momentum indicators like RSI and MFI are showing strength in the current uptrend. The FIIs’ long-to-short ratio in index futures is at an all-time low of 0.09. This oversold level suggests a higher possibility of short covering by FIIs in the coming days.

On the higher side, immediate resistance is seen in the 24,900–25,000 band, where significant Call writing has been observed in the weekly options. On the downside, the recent swing low of 24,624 is likely to act as immediate support, with 24,400 serving as the next major support.

Key Resistance: 24,980, 25,150

Key Support: 24,621, 24,400

Strategy: Buy Nifty Futures around 24,800, with a stop-loss at 24,621, targeting 24,980 and 25,150 (cash levels).

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

Nifty has been moving in a broad range for the past four months. Prices were at the same level even in May 2025. During this range-bound phase, several key events occurred, including tariff and GST reforms.

Nifty has managed to sustain above 24,400, a crucial support, but has not yet generated any strong upward momentum. During such phases, a buy-on-dips strategy is preferred, as long as support holds.

In the short term, an hourly close above 24,890 could lead to short-term bullish momentum, with a move toward 25,020–25,060. On the downside, 24,720 should remain protected on a closing basis, as it coincides with the middle Bollinger Band.

Key Resistance: 25,150

Key Support: 24,720

Strategy: Create long positions if Nifty gives an hourly close above 24,890, with a stop-loss at 24,720 and targets of 25,060 followed by 25,150.

Preeti K Chabra, Founder of Trade Delta

The Nifty index remains above the 40-week EMA (24,303) and 20-SMA (middle Bollinger Band) at 24,816. The weekly RSI at 54.5 is positioned slightly above its signal line, reflecting mild bullish momentum.

On the daily timeframe, Nifty formed a Doji but closed above the 20-SMA at 24,741 and the 40-EMA at 24,793. Strong support is visible around the 23.6% Fibonacci retracement level at 24,742, drawn from the June 30 high of 25,669 to the April 7 low of 21,743. The daily RSI at 53.5 is trading above its signal line, reaffirming the bullish bias.

On the derivatives front, the option chain setup looks neutral, offering no clear directional bias.

Key Resistance: 24,980, 25,150

Key Support: 24,742, 24,621

Strategy: Adopt a buy-on-dips approach. Buy Nifty Futures near the cash price of 24,742, with an upside target of 24,980 and a stop-loss at 24,621.

Bank Nifty - Outlook and Positioning

Nandish Shah, Senior Technical and Derivative Analyst at HDFC Securities

Bank Nifty continued its upward journey for the fifth straight day, closing at the highest level since August 26. It took support at the 200-day EMA and reversed northwards. The short-term trend remains up, as it is placed above its 5-day EMA.

In the Put options, the highest open interest is at the 54,000 strike, suggesting support in the 53,600–54,000 range. This zone also coincides with the 200-day EMA (53,605), indicating strong support.

Key Resistance: 54,650, 55,000

Key Supports: 54,050, 53,600

Strategy: Buy Bank Nifty Futures around 54,050, with a stop-loss at 53,600, targeting 54,650 and 55,000.

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

For the past 8 trading sessions, Bank Nifty has protected the prior day’s low on a closing basis, but struggled to sustain at higher levels. It is currently consolidating within a broad range of 53,560–54,550, around the 38.2% Fibonacci retracement of the March 2025 rally.

A decisive break above 54,550 is required for fresh buying to emerge, which can push prices toward the middle Bollinger Band near 54,700. Unless this range is broken, sideways action is likely to continue. Any breach below 53,560 would be a sign of concern.

Key Resistance: 54,700

Key Support: 53,560

Strategy: Long positions can be created if Bank Nifty gives a 15-minute close above 54,350, with targets of 54,550 followed by 54,700, and a stop-loss at 54,150.

Preeti K Chabra, Founder of Trade Delta

After holding above the crucial support of the 40-week EMA (53,596), the Bank Nifty index is now facing its next hurdle at the 20-SMA (55,535). The weekly RSI at 49.3 remains below its signal line but is trending upward, hinting at mild bullish momentum.

On the daily timeframe, the index is trading below the 20-SMA (54,733) and the 40-EMA (55,130). Strong support is seen near the 61.8% Fibonacci retracement at 53,836, drawn from the July 2 high of 57,628 to the March 11 low of 47,702. The daily RSI at 39.6 has crossed above its signal line, reaffirming a slight bullish bias.

On the derivatives front, the option chain setup remains neutral, offering no clear directional bias.

Key Resistance: 54,500, 54,733

Key Support: 53,800, 53,550

Strategy: Adopt a buy-on-dips approach. Go long on Bank Nifty Futures near the cash price of 54,000, with an upside target of 54,500 followed by 54,733, and a stop-loss at 53,800.

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