The Nifty 50 and Bank Nifty extended their upward journey for the fourth straight day despite pressure at higher levels. Among them, sentiment has gradually been improving for the Nifty 50. If the index surpasses and sustains above the 50-day EMA (near 24,800), the momentum may gain strength and push the index toward the 25,000–25,200 levels, provided 24,700–24,600 acts as a support zone. Meanwhile, as long as the Bank Nifty holds 54,000, a gradual upmove toward 54,500–55,000 is possible; however, breaking below it can drag the index toward 53,600 (200 DEMA), experts said.
On September 8, the Nifty 50 advanced 32 points to 24,773, while the Bank Nifty rose 72 points to 54,187. The market breadth was positive, with about 1,561 shares supported by bulls compared to 1,256 shares that were controlled by bears.
Nifty Outlook and Strategy
Jay Thakkar, Vice President & Head of Derivatives and Quant Research at ICICI Securities
Nifty closed in positive territory for the fourth consecutive day; however, it lacks upward momentum, which is a concern in the near term. According to options data, support in the near term is in the range of 24,500–24,600 levels, whereas resistance lies in the 24,900–25,000 range. So, the overall range for the index is 24,500–25,000.
The India VIX is stable at lower levels, and the IV (implied volatility) is at 9.70, with IVP and IVR readings of 4.80 and 6.71, respectively, indicating that a rise in IV could occur soon, potentially leading to selling pressure at higher levels. Despite the oversold reading in futures—where FIIs have a net long % of 7.55, which is at the lowest extreme—the IVs suggest selling pressure is likely at higher levels. Hence, the short-term outlook is sideways to negative. However, a break above 25,000 will likely lead to significant short covering.
Key Resistance: 24,900, 25,000
Key Support: 24,600, 24,500
Strategy: Buy Nifty Futures above 25,000, with a stop-loss of 24,800, targeting 25,200 and 25,500.
Jigar S Patel, Senior Manager - Equity Research at Anand Rathi
Currently, Nifty is sustaining well above the 100-day and 200-day DEMA, which is a constructive sign for the broader trend. On the daily chart, a double bottom pattern has formed near the 24,400 zone, from where the index has been rising gradually—suggesting that buyers are providing support at lower levels. However, on the hourly scale, some exhaustion signs are visible around 24,800–24,900, indicating short-term resistance. This could trigger a minor pullback toward 24,650–24,700 in the next session before resuming higher.
Importantly, the MACD on the daily timeframe is showing signs of bullish divergence, hinting at strengthening momentum. If this plays out, we expect the index to head toward the 25,000–25,150 zone in the coming sessions. The overall setup remains positive as long as Nifty holds above key moving averages, with pullbacks likely to be temporary and offering buying opportunities.
Key Resistance: 25,000, 25,150
Key Support: 24,500, 24,400
Strategy: Buy Nifty Futures in the 24,900–24,800 zone, with a stop-loss of 24,650, targeting 25,200.
Shitij Gandhi, Senior Research Analyst (Technicals) at SMC Global Securities
Technically, the broader picture remains supportive. Nifty is trading comfortably above its 100-day and 200-day moving averages, keeping the medium-term uptrend intact. However, shorter-term averages are flat, and momentum indicators are neutral, reflecting a sideways undertone in the near term.
For traders, the index has carved out a clear range. On the upside, 24,950–25,000 remains the crucial hurdle—crossing this could set the stage for a fresh rally. However, on the downside, immediate support rests at 24,700 and 24,600, with deeper cushions near 24,500.
Key Resistance: 24,950, 25,000
Key Support: 24,800, 24,700
Strategy: Buy on dips near 24,800, with a stop-loss below 24,600, targeting 25,100.
Bank Nifty - Outlook and Positioning
Jigar S Patel, Senior Manager - Equity Research at Anand Rathi
At the current juncture, Bank Nifty has established a strong base near its 200 DEMA, providing stability and confirming support at lower levels. In the previous week, the index formed back-to-back tweezer bottoms around the 53,500–53,600 zone—a candlestick pattern that often indicates a potential reversal or strong buying support.
On the daily chart, the MACD histogram is showing bullish divergence, suggesting that selling pressure is fading and upside momentum is gradually building. This view is further reinforced by the RSI bullish divergence, which reflects improving relative strength. Together, these technical signals strengthen the case for a rebound. Based on this setup, we expect Bank Nifty to test the 55,300 level in the coming sessions, provided it sustains above its support zones. The overall outlook remains constructive, with short-term dips likely to be absorbed by buyers.
Key Resistance: 55,000, 55,300
Key Support: 53,500, 53,300
Strategy: Buy Bank Nifty Futures in the 54,400–54,500 zone, with a stop-loss of 54,000, targeting 55,300.
Shitij Gandhi, Senior Research Analyst (Technicals) at SMC Global Securities
While the uptick was modest, the move reassured that the Nifty Bank remains steady above the psychological level of 54,000, despite lingering caution across the financial space. The index continues to oscillate within a tight band. On the downside, the 53,800–53,400 zone will act as a crucial support area. However, a sustained break below this pocket could drag the index toward the 52,500–52,300 levels as well.
On the upside, 54,800–55,000 is shaping up as the resistance cluster to watch. Only a decisive breakout above this zone would suggest a shift in sentiment and revive bullish momentum. Overall, the setup suggests a range-bound outlook with a bullish undertone. Therefore, traders are suggested to adopt a “buy-the-dip” stance near strong supports.
Key Resistance: 54,800, 55,000
Key Support: 54,200, 54,000
Strategy: Buy Bank Nifty Futures on dips near 54,300, with a stop-loss below 53,800, targeting 55,000.
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.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
