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The Indian equity benchmarks extended their upward momentum for the seventh consecutive session on Thursday, September 11, with the Nifty 50 breaching the psychological 25,000 mark, and the Sensex advancing over 100 points, amid favorable global cues and renewed trade optimism. Bullish sentiment was underpinned by expectations of a dovish pivot by the US Federal Reserve, with investors pricing in a potential rate cut at next week’s policy meeting. Additionally, renewed optimism surrounding the potential revival of India-US trade negotiations further buoyed market confidence.

At the close, the Sensex settled at 81,548.73, up 123.58 points or 0.15%, while the Nifty 50 ended at 25,005.50, rising 32.40 points or 0.13%, sustaining its positive trajectory. On the currency front, the Indian Rupee depreciated by 34 paise, closing at 88.44 per US dollar, compared to the previous close of 88.10, amid foreign fund outflows and dollar strength globally. Sectorally, performance was mixed. The Nifty Media index outperformed, rallying 1.02%, followed by Nifty Energy (+0.88%) and Nifty PSU Bank (+0.74%), indicating broad-based buying across high-beta sectors. Infrastructure and metals also saw moderate traction, gaining 0.55% and 0.34%, respectively. Conversely, profit-booking was evident in auto and IT counters, with Nifty Auto retreating 0.33% and Nifty IT extending its decline by 0.5%, reflecting continued pressure on technology names amid global headwinds. Broader market traded in a range with Nifty midcap 100 and Nifty small cap 100 closing on a flat note.

Nifty Outlook

The index has formed a small bull candle with a higher high and a higher low signaling consolidation with positive bias amid stock specific action. Nifty is currently placed at the upper band of the recent consolidation range 25,000-24,400. A move and a close above 25,000 levels will extend the current pullback towards key short-term resistance area of 25,200-25,250 levels in the coming week. Immediate support for Nifty is placed at 24,800 levels, holding above the same will keep the bias positive. While short-term support is placed at 24,400-24,300 levels being the confluence of the recent swing lows and the 200-day EMA.

Bank Nifty Outlook

 The Bank Nifty has resumed its positive momentum, as reflected by the higher-high and higher-low formation on the daily chart, effectively negating the recent corrective trend. The 200-day EMA has proven to be a reliable support zone on the daily timeframe. Following a phase of consolidation around this crucial moving average, the index has absorbed selling pressure and is now positioning itself for the next leg of its up move. A breakout from the recent consolidation zone further reinforces the continuation of the uptrend, with immediate support placed at Monday’s low of 54,300. On the upside, the index carries the potential to move towards 55,350, based on the measured move of the consolidation range (53,779–54,670). Momentum indicators also complement this view, with the daily stochastic trending upward, thereby supporting a pullback in the index.

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