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Below the Quote on Weekly Market Wrap 26th September 2025 by Amol Athawale, VP-Technical Research, Kotak Securities

In the last week, the benchmark indices corrected sharply. The Nifty ended 2.65 percent lower, while the Sensex was down by 2200 points. Among sectors, almost all the major sectoral indices registered profit booking at higher levels, but the IT and Realty indices lost the most, with the IT Index down by 7.73% and the Realty sector shedding nearly 6 percent. During the week, the market slipped below the 20 and 50-day SMA (Simple Moving Average), and it also breached the crucial 25,000/81800 support zone, which is largely negative.

Technically, on weekly charts, it has formed a long bearish candle. On intraday charts, it is holding a lower top formation, which supports further weakness from the current levels. We believe that the short-term market trend is weak, but due to temporary oversold conditions, we could see a pullback rally from the current levels.

For traders, 24,800/81200 would act as a key level to watch. Below this, the correction wave is likely to continue. On the downside, the market could retest the levels of 24,500/80300. Further declines may also occur, potentially dragging the index down to 24,350/79800, 24300/79600. Conversely, above 24,800/81200, a pullback formation could continue up to 25,000-25,100/81800-82200.

For Bank Nifty, the 20-day SMA or  54,750 would be a crucial zone. Below this, the chances of hitting 54,000-53,800 increase. However, if it sustains above the 20-day SMA or  54,750, it could bounce back to the 50-day SMA or  55,300-55,500.