Outlook hints at continuation of markets' negative bias

(Technical outlook based on market closing on Wednesday, September 11) 

The Nifty ended Wednesday’s session at 24,918.45, recording a loss of 122.65 points (-0.49%). A continuation of the negative bias is likely if the index breaches the 24,900 level.

In Wednesday's session, the Nifty opened lower at 25,034.00 and briefly touched an intraday high of 25,113.70 during morning trade. However, the afternoon session saw a steady decline, with the index reaching an intraday low of 24,885.20 before closing near that level. The FMCG sector was the only one to buck the broader market's negative sentiment, while sectors such as PSU banks, media, metals, and autos suffered the most significant losses.

Weak market breadth

Overall market breadth was weak, with 1,734 stocks declining, 879 advancing, and 88 remaining unchanged. Notable gainers included Bajaj Auto, Asian Paints, Bajaj Finance, and Britannia, while major laggards were Tata Motors, ONGC, Wipro, and SBI.

From a technical perspective, momentum indicators suggest a neutral trend, and the Nifty closed below its short-term moving averages. The formation of a black candle on the daily chart and the close near the session’s low point to a bearish outlook. On the upside, the index faces resistance at 25,000, while support is expected at 24,900. A sustained move below this support level could extend the downtrend, while a breakout above 25,000 is necessary for any significant pullback.

Intraday levels:
Support: 24,900, 24,800, 24,700
Resistance: 25,000, 25,120-25,220 (15-minute chart)

Positional trading levels:
Short-term support: 24,800 - 24,400
Resistance: 25,350 - 25,850

Bank Nifty outlook

In the previous session, Bank Nifty closed at 51,010 reflecting a loss of 262.30 points. While momentum indicators suggest a positive trend, the index closed below its short-term moving averages, signalling caution. Additionally, the formation of a small black candle on the daily chart, combined with the close near the day's low, indicates a bearish bias.

On the upside, Bank Nifty faces intraday resistance at 51,200, with immediate support at 50,930. A move below this support could extend the negative trend. The index would need to break above the 51,200 mark for any potential pullback rally.

Bank intraday levels:
support: 50,930, 50,700, 50,500
resistance: 51,200, 51,400, 51,600 (15-minute chart)

Bank positional trading levels:
short-term support: 50,700 – 49,600
resistance: 51,750 – 52,775