Nifty 50, Sensex and the Nifty Bank index rose for the third consecutive week breaking above their key resistances. The rise last week confirms the bullish double bottom reversal pattern on Nifty and Sensex. That marks the end of the corrective fall that has been in place since June-end this year.
Overall, the big picture is bullish, and the long-term uptrend has resumed. A short-lived dip is possible in the near term. Thereafter, we can expect the benchmark indices to reverse higher and resume the upmove
FPIs buy
The Foreign Portfolio Investors (FPIs) bought the Indian equities for the second consecutive week. However, the quantum of their purchase is still low. The equity segment saw a net inflow of about $322 million last week. If the FPIs accelerate their purchase, then that could aid the rally in the Sensex and Nifty to gain momentum.
Video Credit: Businessline
Nifty 50 (25,327.05)
Short-term view: The resistance around 25,500 is holding well. A near-term dip to 25,150 or 25,000 is possible this week. Thereafter the Nifty can rise back towards 25,500 and indeed breach that hurdle. That in turn will clear the way for a fresh rise to 26,800-27,000 in the short term.
A break below 25,000 will only turn the outlook negative for a fall to 24,900 and lower. But that is unlikely as we can expect fresh buyers coming into the market and limit the downside.
Chart Source: TradingView
Medium-term view: The double bottom on the daily chart confirms the resumption of the broader uptrend. In addition to this, there is a possible cup and handle pattern formation on the weekly line charts. This adds more strength to our overall bullish case.
We reiterate that Nifty can rise to 28,000-29,000 in the medium term and 31,000 in the long term. Intermediate resistance is around 27,000 now.
The level of 25,000 can act as an immediate support. Below that 24,000 will continue to act as the next strong support.
Nifty Bank (55,458.85)
Short-term view: The strong rise above 55,000 marks the end of the correction that was in place since July this year. The region between 55,000-54,800 is a good support which can be tested this week. Nifty Bank index can reverse higher again from this support zone. That can take it up to 56,300-56,500.
This move will indicate a possible bullish inverted head and shoulder reversal pattern on the daily chart.
The short-term picture will turn negative only if the index declines below 54,800. If that happens, a fall to 54,200-54,000 can be seen.
Chart Source: TradingView
Medium-term view: As mentioned, the short-term rise to 56,500 will be bullish. A decisive break above 56,500 can boost the momentum. Such a break will have the potential to take the Nifty Bank index up to 58,500-59,000 over the medium term. That in turn will also keep our long-term bullish view intact to target 61,000 on the upside.
The level of 54,000 will continue to act as a strong support.
Sensex (82,626.23)
Short-term view: The break above 82,250 happened last week as expected. The intermediate resistance at 83,150 is holding for now. A near-term dip to 82,200 or even 81,700 is possible this week. But thereafter Sensex can rise back towards 83,300-83,500 initially.
An eventual break above 83,500 will then clear the way for an extended rise to 85,000-85,300.
Sensex has to decline below 81,700 to turn the short-term outlook negative. Only then it will come under pressure to see 81,300-81,000 on the downside.
Chart Source: TradingView
Medium-term outlook: The broader bullish view remains intact. The rise to 85,000-85,300 will strengthen the momentum. A decisive break above 85,300 will then clear the way for the rise to 88,000-89,000 in the medium term and 91,000-92,000 in the long term.
Immediate support will be at 81,000. Below that, 79,000 and 77,000 are the next strong supports.
Nifty Midcap 150 (21,900.60)
The bullish breakout above 21,650 has happened in line with our expectation. That keeps intact our overall bullish view. The region between 21,800 and 21,700 will act as a good support and limit the downside now.
Chart Source: TradingView
The Nifty Midcap 150 index can rise to 22,200 in the short term. Failure to breach 22,200 can trigger a corrective dip to 21,600. But eventually we can expect the index to rise past 22,200. That will confirm the bullish inverted head and shoulder pattern on the chart. It can then take the Nifty Midcap 150 index up to 23,000-23,500 in the medium term and 25,000-25,500 in the long term.
Nifty Smallcap 250 (17,505.90)
The strong 2 per cent rise last week indicates that the index is gaining momentum. Any intermediate dip can find support in the 17,200-17,100 region.
Chart Source: TradingView
The outlook is bullish. The Nifty Smallcap 250 index can rise to 18,000-18,100 in the short term. This rise can happen either from here itself or after a dip to 17,200-17,100.
Eventually the index can break above 18,100 which will confirm the bullish inverted head and shoulder pattern. That in turn will boost the bullish momentum. It will then open the doors for the rally to 20,000 in the medium term and 21,500-22,000 in the long term.
Published on September 20, 2025