Nifty stumbles amid sectoral weakness, but positive outlook stays

Nifty and Bank Nifty technical outlook: Key levels and trends as of September 18

On Wednesday, the Nifty closed at 25,377.55, shedding 41 points (-0.16%) as it struggled to hold its ground. The index must breach the critical intraday resistance of 25,450 to reignite its bullish trend.

The day started on a weak note with the Nifty opening at 25,402.40. It briefly touched a high of 25,482.20 but lost momentum, hitting an intraday low of 25,285.60 before ending in the red. While financial services and banking stocks showed resilience, sectors like IT, pharma, metals, and auto dragged the market down. Market breadth reflected the overall weakness, with 1,780 stocks declining versus 832 advancing, and 103 remaining unchanged.

Top gainers included Shriram Finance, Bajaj Finance, Bajaj Finserv, and Nestle India, while TCS, HCL Tech, Infosys, and Tech Mahindra were among the major losers.

Technically, momentum indicators remain in favour of a positive outlook, as the Nifty is still trading above both short- and long-term moving averages. However, the formation of a small black candle on the daily chart signals potential consolidation. A decisive break above 25,450 is crucial for continued bullish momentum, while a close below 25,340 could trigger a shift towards a bearish outlook.

Key intraday levels for Nifty:

• Support: 25,340, 25,260, 25,150
• Resistance: 25,450, 25,525, 25,600

Positional trading levels:

• Short-term support: 25,350–24,800
• Resistance: 25,850–26,350

Bank Nifty rides high on positive momentum

Bank Nifty ended the day at 52,750.40, surging 561.75 points as momentum indicators continue to signal a bullish trend. With the index holding above both its short- and long-term moving averages, the formation of a long white candle on the daily chart suggests further gains are likely.

Immediate resistance is pegged at 52,775, and a sustained move above this level could propel Bank Nifty towards its next target at 53,400. The nearest intraday support stands at 52,600.

Key intraday levels for Bank Nifty:

• Support: 52,600, 52,400, 52,200
• Resistance: 52,935, 53,150, 53,400

Positional trading levels:

• Support: 51,750–50,700
• Resistance: 52,775–53,400