Nifty and Bank Nifty Weekly Outlook from Sept 15 to Sept 19, 2025

Nifty 50 Weekly Outlook

The NIFTY concluded the week on a strong bullish note, closing at 25,107.7 after a robust opening at 24,802.6. The technical landscape appears predominantly bullish, with several key indicators supporting the upward trend. The Relative Strength Index (RSI) is holding strong at 56.99, indicating that the index is neither overbought nor oversold, leaving ample room for further growth. The MACD reading of 225.18 and the bullish signals from Stochastic and Williamson%R reinforce this positive momentum, suggesting that buyer interest remains dominant. Moreover, the index is trading well above all its major simple moving averages, from the short-term 5-period to the long-term 200-period, which confirms the long-term structural uptrend.

However, a closer look reveals some nuanced complexities that warrant caution. The bearish crossover between the 5-period and 20-period DMAs suggests that a short-term correction or a period of consolidation may be forthcoming. This mixed signal is further supported by the Average Directional Index (ADX) at a low of 9.99, which points to a weak and indecisive trend. The low volatility, as indicated by the ATR(14) at 546.31, also suggests that a major directional move may be unlikely in the immediate future, with the market potentially entering a range-bound phase.

Nifty 50 Chart

Nifty 50 Technical Levels

Nifty 50 Weekly Forecast

For the upcoming week, the index is likely to face a key test at the classic R1 pivot level of 25,247.58. A decisive and sustained break above this resistance could open the path towards the next resistance level at R2, located at 25,387.46. However, given the weak trend and low volatility, a more probable scenario is that the index will retest the pivot point at 24,999.56. Traders should be prepared for a potential pullback to the S1 support at 24,859.68 if the bearish short-term crossover gains momentum. In this environment, a "buy on dips" strategy at key support levels could be more rewarding than chasing breakouts. Overall, while the long-term trend remains positive, the short-term technicals suggest a period of consolidation or minor correction, making it a critical week for market participants to watch the pivot levels closely.

Bank Nifty Weekly Outlook

BANKNIFTY closed the week at 54,784.55, demonstrating a modest gain and a higher closing price than its opening. The weekly chart shows an Upper Bollinger Band at 57,619.22 and a Lower Bollinger Band at 53,511.55, indicating a potential trading range for the near term. The Average True Range (ATR) at 1,259.34 suggests a period of low volatility, which aligns with the "Weak Trend" indicated by the ADX(14) at 19.68.

From an indicator perspective, there is a mixed bag of signals. While the MACD(12,26,9) and ROC(20) are bullish, the Stochastic(20,3), CCI(20), and Williamson%R(14) are all in bearish territory. The RSI(14) at 52.25 remains neutral, suggesting a lack of strong directional momentum.

Analysing the moving averages, the 5-day SMA is bullish, but the 10-day and 20-day SMAs are bearish, indicating short-term weakness. The longer-term MAs (50, 100, and 200) are all bullish, which suggests that the underlying long-term trend remains positive despite recent fluctuations. The short-term 5 & 20 DMA Crossover is bearish, reinforcing the idea of a potential near-term correction, while the medium and long-term crossovers remain bullish.

Bank Nifty Chart

Bank Nifty Technical Levels

Bank Nifty Weekly Forecast

Given the conflicting signals, a period of consolidation or sideways movement is highly likely. The market may oscillate between the classic pivot point of 54,567.98 and the R1 level of 55,068.82. A break below the S1 support at 54,283.72 could lead to further declines towards S2 (53,782.88), potentially testing the lower Bollinger Band. Conversely, a sustained move above R1 (55,068.82) could signal a stronger bullish trend towards R2 (55,353.08). Traders should remain cautious, focusing on key support and resistance levels, as the market currently lacks a clear directional bias.