Technical Outlook For Nifty, Bank Nifty
Amol Athawale,
VP technical Research,
Kotak Securities
Mumbai, August 29, 2025: In the last week, the benchmark indices witnessed selling pressure at higher levels. The Nifty ended 1.8 percent lower, while the Sensex declined by 1500 points. Among sectors, the Capital Market Index lost the most, declining by 7.5 percent, whereas some buying was seen in selective FMCG stocks, resulting in the FMCG Index gaining 0.67 percent. Technically, on weekly charts, it has formed a long bearish candle and also a lower top formation, which is largely negative.
We are of the view that the market's short-term outlook remains weak, but a fresh selloff is possible only if the level of 24,330/79700 is breached. On the other hand, above 24,550/80500, the pullback rally could continue up to the 20-day SMA (Simple Moving Average) or 24,700/81000 and 24,800/81300.
On the downside, if the market falls below 24,330/79700, it could slip to the 200-day SMA or around 24,070/78900. Further downside may also continue, which could drag the market down to 23,900/78400.
For Bank Nifty, if it sustains above 53,500, a pullback move is likely to continue toward 54,500–55,000–55,800. Conversely, if it falls below 53,500, it could decline toward the 200-day SMA or around 53,000–52,800.
As per the technical view by Mr. Hrishikesh Yedve, AVP Technical and Derivative Research, Asit C. Mehta Investment Intermediates Ltd, “The Indian benchmark index Nifty opened negative, remained under pressure despite pullback, and finally settled on a bearish note at 24,427. Technically, on the daily chart, the Nifty formed a bearish candle, indicating continued weakness. On the downside, immediate support is placed near its recent swing low near 24,340, followed by 200-DEMA 24268 level. On the upside, 100-DEMA hurdle is placed near 24,630 levels, which will act as immediate hurdle for Nifty. Thus, short-term traders are advised to adopt a sell-on-bounce strategy.
The Bank Nifty index opened negative, witnessed selling pressure at higher levels, and eventually settled on a bearish note at 53,656. Technically, the Bank Nifty index formed a doji candle near 200-DEMA support, placed around 53,570. Hence, traders are advised to wait for a follow up candle and till then remain careful in the short term.”
