Market outlook shows Nifty remains firmly in bullish territory

Nifty technical outlook based on market closing on September 23:

The Nifty 50 soared to a new all-time high on Monday, closing at 25,939.05, a gain of 148.10 points or 0.57%. The index opened with a positive bias at 25,872.60 and climbed steadily throughout the session, testing a peak of 25,956 before closing just shy of that mark. Strong buying interest, especially in sectors like PSU banks, real estate, auto, and media, contributed to the rally, while the IT sector lagged.

Market breadth was notably strong, with 1,602 stocks advancing, 1,026 declining, and 88 remaining unchanged. Among the top gainers were M&M, Bajaj Auto, ONGC, and Hero MotoCorp, while Eicher Motors, Divi’s Laboratories, ICICI Bank, and IndusInd Bank were the day's biggest losers.

Technical overview

From a technical perspective, the Nifty remains firmly in bullish territory. Momentum indicators suggest sustained strength, with the index holding above its short- and long-term moving averages. The formation of a white candle on the daily chart, coupled with the record close, further supports the bullish outlook.

The Nifty is expected to maintain its upward momentum if it stays above the crucial support level of 25,850. Resistance is seen at 26,000, with further upside potential toward 26,400 in the near term. A break above this level could fuel additional gains, but any slip below 25,850 could trigger caution among traders.

Key levels to watch

• Intraday support: 25,925, 25,850, 25,750
• Intraday resistance: 26,000, 26,075–26,150
• Positional support: 25,850–25,350
• Positional resistance: 26,400–27,000

Bank Nifty technical outlook

The Bank Nifty index also extended its gains, closing 312.60 points higher at 54,105.80. The technical setup remains positive, with momentum indicators signalling further upside potential as the index trades above its key moving averages.

On the upside, Bank Nifty faces resistance at 54,500, while intraday support is at 54,000. The bullish trend is expected to persist as long as the index stays above the 54,000 level.

Bank Nifty key levels

• Intraday support: 54,000, 53,750, 53,500
• Intraday resistance: 54,250, 54,500, 54,750
• Positional support: 53,400–52,100
• Positional resistance: 54,500–55,600

In sum, both Nifty and Bank Nifty display strong bullish trends, supported by positive market breadth and favorable technical indicators. Traders should watch key support and resistance levels closely as the indices approach crucial milestones.