Nifty and Bank Nifty Weekly Outlook from September 1 to September 5, 2025

Nifty 50 Weekly Outlook

The short-term technical indicators are clearly pointing to a bearish trend. The 5, 10, and 20-period SMAs are all bearish, with the index trading below these key averages. Furthermore, a bearish 5 & 20 DMA crossover has occurred, signaling a shift in short-term momentum from positive to negative. While the RSI is neutral, the Williamson %R is deeply oversold at -93.29, suggesting that the selling may be overextended, which could precede a bounce. The ADX value of 11.17 points to a weak or non-trending market, even amidst the sharp decline, which could mean the market is in a consolidation phase following a strong move. The low ATR of 557.97 also suggests a lack of strong directional conviction in the near term

Nifty 50 Chart

Nifty 50 Technical Levels

Nifty 50 Weekly Forecast

The outlook for the next trading week is bearish, with a high degree of volatility expected. The index has breached its Classic Pivot Point of 24,619.96, and the immediate support to watch is S1 at 24,218.38. A breakdown below this level could accelerate the decline toward S2 at 24,003.11 and potentially towards the 200-day SMA, a major long-term support. On the upside, any bounce is likely to face stiff resistance at the recently broken pivot point and the short-term moving averages. A "sell on rise" strategy appears prudent until the index can regain its footing above the short-term moving averages and the pivot point, which would signal a potential pause in the current downtrend.

Bank Nifty Weekly Outlook

The index opened the week on a positive note, but the selling pressure was so significant that it wiped out all gains, pushing the index to a new weekly low. The close near the weekly low is a powerful indication of sellers' dominance.

This price action is confirmed by the technical indicators. Short-term moving averages (5, 10, and 20-period SMAs) are all indicating a bearish trend. The 5 & 20 DMA Crossover is bearish, reinforcing the downward momentum. While the MACD is still bullish, the Stochastic and CCI are clearly bearish, with the Stochastic reading of 31.09 pointing to an oversold condition, which could be an early sign of a potential rebound, but not a confirmation yet. The low volatility indicated by the ATR suggests a period of consolidation before the next big move.

Bank Nifty Chart

Bank Nifty Technical Levels

Bank Nifty Weekly Forecast

For the next trading week, the outlook is bearish. The index has broken below its weekly pivot point. The immediate support to watch is the Classic S1 at 53,097.53, and a break below that could push the index towards S2 at 52,502.21. On the upside, the index will face strong resistance at the weekly high of 55,306. Traders should be cautious and consider a "sell on rise" strategy. The short-term bearishness is likely to continue until the index can close decisively above its 5-day SMA. The long-term trend, however, remains bullish, as seen by the 50, 100, and 200 DMAs.

RA Disclaimer: The information provided here is for educational and informational purposes only and should not be construed as investment advice. You are solely responsible for conducting your research and due diligence before making financial decisions.