Nifty, Sensex and the Nifty Bank index have risen well for the second consecutive week. All the three indices were up over a per cent each. This has given more relief and eased the danger of seeing a steeper fall.
The rise in Nifty and Sensex is happening well within their range. However, on the daily chart, Nifty and Sensex are giving an early sign of a bullish reversal pattern. A further rise this week will confirm the same and will strengthen our broader long-term bullish outlook.
Nifty Bank index on the other hand is not giving out any strong signals. It has key resistances coming up. If it manages to surpass that hurdle, then the bullish sentiment can come back convincingly.
Among the sectors, the BSE Capital Goods and BSE IT index outperformed by surging over 4 per cent each.
FPIs Buy
The Foreign Portfolio Investors (FPIs) turned net buyers of Indian equities after selling for eight consecutive weeks. The quantum of inflow was less though. The equity segment saw a net inflow of $168 million. The FPIs have to accelerate their purchase to aid the Sensex and Nifty move higher.
Video Credit: Businessline
Nifty 50 (25,114)
Short-term view: The outlook is positive. Support is in the 25,000-24,900 region. Nifty can break the immediate resistance at 25,250 and rise to 25,500. That will confirm the double bottom bullish reversal pattern. In that case, 25,000 will then become a very good support and limit the downside.
A fall below 24,900 is needed to turn the near-term outlook negative and take it down to 24,700 and lower.
Failure to breach 25,250 can keep the 24,300-25,250 range intact.
Chart Source: TradingView
Medium-term view: There is no change in our broader bullish view. Indeed, the possible double bottom formation on the daily chart strengthens the bullish case. As such, we retain our view of the Nifty targeting 28,000-29,000 in the medium term and 31,000 in the long term.
The broad 24,000-23,000 region will continue to act as a strong support. Nifty has to decline below 23,000 to negate the bullish view. That looks unlikely.
Nifty Bank (54,809.30)
Short-term view: Immediate resistance is at 55,000. Support is at 54,600. A break above 55,000 can take the Nifty Bank index up to 55,700-55,800. That will indicate a bullish trend reversal.
But a break below 54,600 can drag the index down to 54,000 first and then a rise is possible again. In that case, the break above 55,000 and the rise to 55,700-55,800 will get delayed.
A decisive break below 54,000 is now needed to turn the short-term picture negative. Only then the danger of a fall to 53,000 will come into the picture again.
Chart Source: TradingView
Medium-term view: The big picture is positive with strong support in the 53,000-52,000 region. A rise above 56,000 will clear the way for the rise to 59,000 over the medium term. The upside is open to target 61,000 in the long term.
The index has to fall below 52,000 to negate the bullish view.
Sensex (81,904.70)
Short-term view: Sensex is moving up within its 79,750-82,250 range. Intermediate support is in the 81,450-81,400 region. If Sensex sustains above it, the chances are high to break 82,250. Such a break can take the Sensex up to 83,500-83,600 initially and then to 85,500-86,000 eventually.
Sensex will come under pressure for a fall to 81,000 and lower only if it declines below 81,400. That looks less likely.
Chart Source: TradingView
Medium-term view: There is no change in our broader bullish view. Strong supports are at 79,000 and 77,000. Sensex can rally to 88,000-89,000 in the medium term and 91,000-92,000 in the long term.
Sensex has to decline below 77,000 to negate the bullish view.
Nifty Midcap 150 (21,567.20)
The index has come up to the upper end of the 20,700-21,650 range. Intermediate support is at 21,100-21,000. A fall below 21,000 is needed to turn the near-term outlook negative and see 20,700 on the downside.
Chart Source: TradingView
The bias is positive to see a bullish breakout above 21,650 and rise to 22,000-22,200.
If that happens, 21,650 will then become a very good resistance-turned-support level. It can limit the downside thereafter and trigger a breakout above 22,200 eventually. That rise above 22,200 will confirm the bullish inverted head and shoulder pattern on the chart. It will then clear the way for the Nifty Midcap 150 index to target 23,000-23,500 over the medium term and 25,000-25,500 in the long term.
Nifty Smallcap 250 (17,144.85)
The rise last week has eased the downside pressure. It also keeps alive the chances of the inverted head and shoulder pattern. Immediate resistance is in the 17,200-17,250 region. Support is at 16,900.
Chart Source: TradingView
A breakout above 17,250 will clear the way for a fresh rally to 18,000-18,100 in the next few weeks. Such a rise will strengthen the bullish case. An eventual break above 18,100 will then confirm the bullish inverted head and shoulder pattern. That in turn will clear the way for a rise to 20,000 in the medium term and 21,500-22,000 in the long term.
Published on September 13, 2025
