Nifty Technical Outlook
Based on Market Closing on Thursday, September 05, 2024

In the last trading session, the Nifty closed at 25,145.10, down by 53.60 points or 0.21%. The index exhibited a downward bias, this trend is likely to persist if it remains below the 25,175 level.

The session started with a positive tone, as the Nifty opened at 25,250.50 and reached an intraday high of 25,275.40 during the morning trade. However, it gradually lost momentum, falling to an intraday low of 25,127.80 before closing at 25,145.10. Sector-wise, media, IT, PSU banks, and metals were the top performers, while realty, auto, pharma, and FMCG sectors led the declines.

The market breadth remained positive, with 1,443 stocks advancing, 1,122 declining, and 129 remaining unchanged. Notable gainers in the Nifty index included TITAN, LTIM, WIPRO, and BPCL, while the major losers were CIPLA, RELIANCE, DR REDDY, and COAL INDIA.

From a technical perspective, momentum indicators are signaling a bullish trend, as the Nifty continues to trade above both short-term and long-term moving averages. However, the index formed a black candle on the daily chart, closing below the previous day's level, indicating a mild bearish bias. The Nifty faces immediate resistance at the 25,175 level, with support at 25,100.  In conclusion, while the overall market sentiment is positive with key sectors performing well, the Nifty faces short-term resistance that may hinder its upward movement. Sustained trading below the 25,175 level could continue the downward momentum, but if the index manages to hold above key support of 25100, a reversal may occur in the coming sessions

Intraday Levels: Support: 25,100, 25,025, 24,950 Resistance: 25,175, 25,250-25,350 (based on 15-minute charts)

Positional Trading Levels: Short-term Support: 25,080-24,475 Resistance: 25,600-26,150

Bank Nifty Technical Outlook

In the previous trading session, Bank Nifty closed at 51,473.05, gaining 72.80 points. Technically, momentum indicators point to a positive trend, with the index holding above both its short-term and long-term moving averages. Although the index formed a small black candle on the daily chart, it closed above the previous day's level, indicating the potential for an ongoing uptrend.

On the upside, Bank Nifty faces immediate intraday resistance at 51,500, while support is found at 51,300. If the index trades and sustains above 51,500, a bullish trend may continue through the session. However, if it fails to break this level,  consolidation below 51,500 is likely over the next few days.

Intraday Levels: Support: 51,300, 51,150, 51,000 Resistance: 51,500, 51,650, 51,800 (15-minute chart)

Positional Trading Levels: Support: 51,000–49,600 Resistance: 52,500–53,400