IGI Logo

NIFTY WEEKLY OUTLOOK 

The Nifty index witnessed a volatile week, remaining under pressure throughout the sessions. The index opened at 24,117.55, touched a high of 24,143.15, slipped to a low of 23,786.80, and finally settled at 23,897.70, declining 277.95 points (-1.15%). Nifty initially found support near the 24,000 mark and traded in the 24,000–24,100 zone, but the failure to sustain above 24,100 was followed by a breakdown below 24,000. The gap-down opening on 2nd September further indicated weakness; however, the index did not witness significant follow-up selling and instead found support near the 23,800 zone, leading to volatile range-bound movement. Towards the end of the week, Nifty attempted a recovery from lower levels, but 24,000 again acted as a strong resistance, resulting in fresh selling pressure.

The weekly price action remains cautious, with the index continuing its corrective structure and breaking below the lower trendline of the symmetrical triangle pattern. The expiry session on Thursday formed a bearish red candle, while the final trading session witnessed a rebound from lower levels but faced rejection near 24,000, forming a bearish pin-bar-like candle on the daily chart. Overall, the consecutive bearish weekly candles indicate continued selling pressure, while the 23,800 zone remains important for the index to hold and avoid further weakness.

Sector-wise, the performance remained mixed during the week, with Nifty Realty, Nifty Private Banks and Energy showing relative strength and supporting the broader market. On the other hand, Nifty IT, Nifty Auto and Nifty FMCG remained among the weaker sectors and witnessed selling pressure. Overall, sectoral participation remained selective, with strength concentrated in specific pockets rather than across the broader market

From a technical perspective, Nifty is currently trading below its 20-week, 50-week and 100-week EMAs, indicating weakness across the short- to medium-term trend. However, the index continues to trade above the 200-week EMA, which remains an important long-term support. The weekly RSI stands at 45.65, remaining below the neutral 50 mark and reflecting subdued momentum. The breakdown below the lower trendline of the symmetrical triangle adds caution to the structure, while a sustained recovery above the 24,000–24,200 zone will be required to improve the technical setup.

For the coming week, 23,800–23,600 will act as the immediate support zone, while 24,000–24,200 remains the key resistance area. The broader trading range is expected between 23,600 and 24,200, with a Sideways to Bearish bias. Sustaining below 24,000 could keep selling pressure intact and may lead to a retest of lower support levels, whereas a decisive move above 24,200 would be required to negate the current bearish undertone. Traders are advised to remain stock-specific, avoid aggressive positions within the range and follow disciplined risk management.

Support Levels: - 23,600 - 23,800

Resistance Levels: - 24,000 - 24,200

Overall Bias: - Sideways to Bearish

BANKNIFTY WEEKLY OUTLOOK

Bank Nifty started the week with a recovery attempt but faced strong selling pressure near the 57,700 zone. The index then witnessed a sharp decline and found support around the major 57,000 level during the middle of the week, after which it remained largely range-bound. A gap-up move towards the resistance zone in the later sessions failed to sustain, leading to sideways price action. Bank Nifty opened at 57,353.75, touched a high of 58,024.95, slipped to a low of 56,823.20, and finally settled at 57,369.65, declining 126.65 points (-0.22%) for the week.

The weekly price action reflects continued consolidation, with the index finding buying interest around the 57,000 zone but facing consistent supply near 57,800–58,000. The weekly candle formed a Doji, highlighting indecisiveness between buyers and sellers. The inability to sustain above the higher resistance zone indicates that bulls are yet to establish strong control, while holding the lower support zone remains important to prevent further weakness.

From a technical perspective, Bank Nifty continues to maintain its broader rising structure, with the index trading within the larger upward trendline formation visible on the weekly chart. The 20-week EMA support remains intact, and the index continues to trade above all key moving averages, keeping the broader technical structure positive. The current consolidation near the upper portion of the range suggests a period of balance after the recent recovery. The Weekly RSI stands at 52.23, remaining above the neutral 50 mark, indicating mildly positive momentum but a lack of strong directional strength. A decisive breakout from the current range will be important for the next directional move.

For the coming week, 56,800–57,200 will act as the immediate support zone, while 57,800–58,000 remains the key resistance area. The index is likely to remain range-bound until a decisive breakout or breakdown occurs. Sustaining above 58,000 could revive bullish momentum and open the possibility of further upside, whereas a break below 56,800 may invite renewed selling pressure. Overall, the bias remains sideways, and traders are advised to remain stock-specific and follow disciplined risk management until a clear directional move emerges.

Support: 56,800–57,200

Resistance: 57,800–58,000

Overall Bias: Sideways

For Detailed Report With Disclaimer Visit. https://choicebroking.in/disclaimer

SEBI Registration no.: INZ 000160131