The Nifty 50 closed at 25,239, rising 170 points and breaking out of a short-term consolidation pattern. Analysts say a decisive close above 25,250 could pave the way for further upside toward 25,400 and 25,550. On the downside, immediate support lies at 25,150, followed by a stronger support zone between 25,000 and 24,850.
Technical indicators remain favorable, with the Relative Strength Index (RSI) climbing to 63.8 and the Moving Average Convergence Divergence (MACD) showing a strong bullish crossover. A long bullish candle on the daily chart reinforces positive sentiment.
Bank Nifty Outlook
The Bank Nifty surged to 55,148, forming a bullish candle backed by strong volumes. The index has reclaimed its 50-day exponential moving average and now trades above all key moving averages. Experts point to resistance near 55,445 and 56,075, while support is seen at 54,629 and 54,392.
Momentum remains strong with RSI at 55, while the MACD indicates continued bullish momentum.
Options Market Signals
Options data suggests a bullish undertone. For the Nifty, the highest Call open interest is at 26,000, making it a key resistance, while the highest Put open interest at 25,200 indicates strong support. The Put-Call ratio (PCR) jumped to 1.29, reflecting bullish positioning by traders.
In Bank Nifty, the 57,000 strike holds the maximum Call open interest, while strong Put interest at the 54,000 and 55,000 strikes indicates firm support zones.
Volatility Remains Low
The India VIX, which measures market volatility, dropped 1.2 percent to 10.27, staying below key averages. Analysts believe this low volatility environment continues to favor bulls in the short term.
Stock-Specific Action
On September 16, a long build-up was observed in 88 stocks, while 67 counters witnessed short covering, further boosting market confidence. However, 41 stocks saw short build-up, indicating selective bearish bets.
Securities such as Angel One, HFCL, Oracle Financial Services Software, and RBL Bank remain under the F&O ban list, as their derivative contracts have exceeded regulatory limits.
Outlook for September 17
Experts maintain a cautiously optimistic stance for September 17. Sustaining above 25,250 on Nifty and 55,000 on Bank Nifty could keep bulls in control. However, traders are advised to remain watchful of profit booking at higher levels.