Nifty Trading Strategy: Nifty 50 witnessed consolidation after a day of sharp gains. On September 13, the market declined marginally due to profit booking, forming a bearish candlestick pattern on the daily chart. However, every week, Nifty gained 2 percent. This formed a bullish engulfing candlestick pattern on the weekly time frame, which is an indicator of uptrend. If the Nifty 50 index manages to stay above 25,100 amid possible consolidation, then it can achieve a target of 25500. After that 25800 will be its next stop. Market experts say that if Bank Nifty closes and sustains above 52000, then it is expected to move towards 52800.

On Friday, Nifty 50 fell 32 points to close at 25,357, while Bank Nifty closed 166 points higher at 51,938. On NSE, 1,551 stocks rose, while 904 stocks declined.

Nifty Outlook and Strategy

Rajesh Palvia of Axis Securities says that a break above last week's high is needed to confirm the bullish engulfing formation. This will give bullish signals. The chart pattern suggests that if the Nifty crosses the 25,500 level and remains above it, then buying may increase in it. Due to this, the index may be seen moving towards 25,700-25,900. However, if the index breaks below the 25,200 level, then selling pressure may push the index towards 25,000-24,800. This week Nifty may be seen moving in the range of 25,800-24,800 with a positive trend. The Weekly Strength Index RSI (Relative Strength Index) is on the verge of crossing its reference line, which is a positive sign.

Key Resistance: 25,500, 25,650

Key Support: 25,250, 25,100

Strategy: Buy Nifty around 25,300, stop-loss at 25,200 and target 25,550-25,600.

Rajesh Bhosale of Angel One says that going forward we should adopt a buy-on-dips strategy. There are no immediate signs of weakness in the market. Keeping in mind the possible volatility with the upcoming Fed policy, it may be right to book profits at higher levels. For Nifty, immediate support is at 25,200 while the next major support is at 25,000-24,970. On the upside, there is immediate resistance in the zone of 25,500-25,600 which is seen with the "Bearish Wolfe Wave" reversal zone. After this, the next major resistance is at 25,800. Volatility may increase further in the market.

Key Resistance: 25,500, 25,600, 25,800

Key Support: 25,200, 25,000, 24,970

Strategy: Keeping in mind the upcoming events, traders should buy on dips and book profits at higher levels to manage risk effectively.

Bank Nifty - Outlook and Positioning

Rajesh Palvia of Axis Securities says that Bank Nifty showed a gain of 1,361 points last week. On the weekly chart, the index has formed a bullish candle that completely engulfs the previous week's move, forming a "bullish engulfing" candlestick. This is a bullish pattern. To confirm this formation, a break above the previous week's high is required. Which will confirm the uptrend.

The chart pattern suggests that if Bank Nifty crosses and sustains above the 52,000 level, it may witness an upward trend. This could take Bank Nifty towards 52,500-52,700. However, if the index breaks below the 51,650 level, selling pressure could take it towards 51,500-51,200. This week, Bank Nifty may trade within the range of 52,700-51,200 with a bullish trend.

Key Resistance: 52,200, 52,500

Key Support : 51,750, 51,500

Strategy: Buy Bank Nifty near 51,750, stop-loss at 51,500, and target 52,200-52,350.

Rajesh Bhosale of Angel One says that during the past week, Bank Nifty found support at 89 EMA and this triggered a significant surge breaking the recent congestion zone on the upside. The formation of an "inverse head and shoulder" pattern indicates strong performance in the near term. This week, strong support for Bank Nifty will be at 51,200-51,000 which coincides with the 50-day EMA (exponential moving average). If the uptrend continues, Bank Nifty can touch the previous swing high of 53,000.

Key Support: 52,500, 52,800, 53,000

Key Resistance: 51,500, 51,200, 51,000

Strategy: Bank Nifty is likely to perform better in the coming week after breaking out of the overbought zone. Traders should maintain a positive stance, use dips as a buying opportunity, and focus on the components of Bank Nifty.