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Indian benchmark indices extended gains on September 18, with the Nifty comfortably holding above the 25,400 mark supported by firm global cues as The Federal Reserve lowered interest rates by 0.25% on Wednesday for the first time in nine months and sees the need two more rates cuts this year as worries of softening in the labor market, which threatens the economy, outweigh concerns about inflation still running above the central bank’s target. At the close, the Sensex advanced 320.25 points or 0.39% to settle at 83,013.96, while the Nifty 50 climbed 93.35 points or +0.37% to end at 25,423.60, reflecting sustained buying interest across key heavyweights.

On the sectoral landscape, Pharma led the charge with a robust 1.5% uptick, followed by the IT index gaining 0.8%, while Private Banks and Metals posted moderate advances of 0.4% and 0.3%, respectively. Conversely, pockets of profit-taking dragged the Energy, Media, and Capital Goods indices lower by around 0.3% each. The Midcap index advanced 0.38%, while the Small-cap index registered a relatively modest gain of 0.29%, indicating sustained broader-market participation.

Nifty Outlook

The index has formed a high wave candle with a long lower shadow signaling buying demand at lower levels highlighting extension of the up move. The index continues to maintain higher high and higher low in daily chart. As mentioned in earlier edition, Nifty has recently generated a bullish crossover of 20- and 50-days EMA highlight positive bias from short term perspective. Nifty to maintain positive bias and head higher towards 25,500-25,550 levels in the coming sessions. On the downside, immediate support is seen near the 24,900-25,100 levels being the confluence of the 20 days EMA and the 50% retracement of the current pullback (24404-25448).

Bank Nifty Outlook

The Bank Nifty has formed a high wave candle with a higher high and higher low signaling extension of the pullback for the 12th consecutive sessions. The index is seen sustaining above the short & medium-term moving averages. We expect the index to maintain positive bias and head higher towards 56,000-56150 levels in the coming sessions being the 61.8% retracement of the entire decline (57628-53561). On the downside, immediate support is placed at 54,800 levels being the 20- and 100-days EMA. While key support is placed at 54000 levels being the confluence of the last week low and key retracement of the current pullback.

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