NIFTY AND BANKNIFTY OUTLOOK FOR SEPTEMBER, 2025

 For September 2025, the outlook for Nifty 50 and Bank Nifty is cautiously constructive, with both indices expected to consolidate within established ranges unless key resistance levels are decisively breached. Momentum is currently neutral-to-weak for banks, while Nifty benefits from outperformance in IT and select auto stocks.

Nifty 50 September 2025 Outlook

·         Nifty 50 continues to trend above its major moving averages (100-day and 200-day EMAs), indicating the long-term trend remains intact.

·         Technical indicators (RSI, MACD) are mostly neutral, hinting towards a range-bound consolidation phase unless a breakout occurs.

·         Key resistance is firmly placed at 24,950–25,000; a close above 25,000 would set up for a rally towards 25,250–25,500. Immediate support levels are at 24,500–24,550 and 24,300.

·         Strong sector performance persists in IT (Infosys, Wipro, Tech Mahindra) and autos, while banking and FMCG have underperformed recently.

·         A prolonged phase of consolidation is likely until the index gives a clear breakout above 25,000; otherwise, dips towards support levels may attract buyers.

Bank Nifty September 2025 Outlook

·         Bank Nifty is underperforming the broader market and remains below its short- and medium-term moving averages (20, 50, 100-day EMAs).

·         Relative strength indicators point to sustained weakness in banking stocks, with resistance at 54,500–55,000 and strong support at 53,600–53,000.

·         Bullish rallies in Bank Nifty are likely only if it decisively moves above 54,500; otherwise, consolidation or mild downside may continue.

·         The banking sector needs a pickup in momentum for overall market progress in September; until then, expect low volatility and sideways action.

·         Watch for reaction at crucial levels (support at 53,600, resistance up to 55,000) to frame positional trades.

Trading Range Summary

Index	Support Levels	Resistance Levels	Trend
Nifty 50	24,300–24,550	24,950–25,500	Consolidation
Bank Nifty	53,000–53,600	54,500–55,000	Weak/neutral

Key Observations

·         Nifty 50 will potentially outperform due to sector rotation into IT and autos, with volatility likely near resistance.

·         Bank Nifty faces headwinds and will likely lag unless a strong buying signal emerges above resistance.

·         September 2025 is shaping up as a consolidation phase, with breakouts needed for index direction.

·         Global cues, inflation data, and FII/DII flows will remain important for overall sentiment.

Positioning should be adapted to the ongoing consolidation and key technical levels, with bullish trades favoring breakouts and cautious approaches at resistance zones.