As long as the Nifty 50 holds 23,800 as a support level, an upmove towards the 24,000-24,100 zone may be possible in the short term. However, sustaining those gains could remain challenging due to the prevailing bearish trend. The index continues to trade below all key moving averages, with the short- and medium-term moving averages trending downward, while momentum indicators and oscillators continue to signal weakness. Below 23,800, the 23,600 level could act as a crucial support. Meanwhile, the Bank Nifty may extend its upward journey towards the 57,800-58,000 zone. However, a sustained move above 58,000 would be crucial for further gains, while the 57,300-57,100 zone could act as a support area, according to experts.
On September 3, the Nifty 50 fell 41 points, or 0.17 percent, to 23,873, while the Bank Nifty rose 209 points, or 0.36 percent, to 57,381. Market breadth turned favourable for the bulls amid outperformance by the broader markets, with about 1,985 shares advancing against 1,249 declining shares on the National Stock Exchange.
Dhupesh Dhameja, Derivative Research Analyst at Samco Securities
The Nifty failed to sustain its gap-up opening, with selling pressure emerging near the 24,000 resistance zone, reflecting continued supply at higher levels. The index remains below its declining 10-DEMA at 24,081, while the RSI at 37.11 continues to indicate weak momentum. The 23,800 level remains the immediate support; holding above it could support a recovery towards 24,000–24,050, while a sustained breakout above this zone may trigger short covering towards 24,180–24,250. A break below 23,800 could extend the weakness towards 23,600.
Derivatives positioning remains Call-heavy, with active Call writing at 24,000 and 24,200, while Put support is shifting towards 23,500–23,600, warranting caution.
Overall, the market remains in a corrective and cautious phase. Traders should avoid aggressive long positions until the Nifty reclaims 24,050, while a break below 23,800 would warrant a defensive approach.
Strategy: Traders may consider a Short Straddle strategy for the September 8, 2026 expiry by selling one lot of the 23,900 PE at Rs 112 and one lot of the 23,900 CE at Rs 102. This setup is designed to capitalise on a potential range-bound movement.
Target: Hold the strategy with the aim of achieving a maximum Mark-to-Market (MTM) profit of Rs 12,321, with profit booking once MTM gains exceed Rs 6,500.
Stop-Loss:Hold the strategy strictly, with the maximum Mark-to-Market (MTM) loss capped at Rs 6,500 to ensure disciplined risk management.
Jay Mehta, Technical Research at JM Financial Services
The Nifty has broken down below the support trendline that had been holding since the April low and has also slipped below the key psychological level of 24,000. This zone is now expected to act as strong resistance going forward. The immediate and crucial support lies around 23,780. As long as this level holds, some bounce or consolidation remains possible. A decisive break below 23,780 could invite further selling pressure and open the downside towards 23,620–23,500.
On the upside, resistance clusters are placed at 24,000, followed by 24,200, with a stronger hurdle around 24,340. The overall setup remains negative to neutral as long as 23,780 holds; a breach of this level would turn the bias more clearly bearish. Trend and momentum indicators continue to reflect weak sentiment and are likely to remain so while the price stays below 24,340.
Strategy: Sell Nifty Futures on rises near resistance as long as the Nifty remains below 24,340. Initiate fresh short positions on a sustained break below 23,780.
Sachin Gupta, VP – Technical Research at Choice Equity Broking
On the daily chart, the Nifty formed a strong bearish candle and broke below the lower trendline, further weakening the short-term technical structure. The index is currently trading below all key EMAs — 20, 50, 100, and 200 — indicating that sellers continue to remain in control. The immediate support zone is placed at 23,800–23,700, while resistance is seen around 24,000–24,100. The broader trading range is expected to remain between 23,700 and 24,100, with the near-term bias remaining sideways to bearish.
The RSI stands at 37.11, indicating weak momentum, while the PCR at 1.13 suggests a relatively balanced derivatives setup. The India VIX declined to 11.33, indicating a marginal easing in volatility despite the weak price action.
In the options data, the 23,800 strike holds the highest Put open interest and may act as an important support, while 24,000 has the highest Call open interest and is likely to remain a key resistance. Overall, the technical structure remains weak, and traders may continue to adopt a sell-on-rise approach until the Nifty sustains above the resistance zone.
Nifty September Futures is currently trading around 23,974.8 and has faced rejection near the previous support zone before starting to decline, indicating selling pressure at higher levels. The immediate support is placed in the 23,800–23,700 zone, while the 24,200–24,300 range remains the key resistance area.
Strategy: Sell Nifty Futures on a rise around 24,100–24,200, with a stop-loss at 24,300 on a closing basis.
Dhupesh Dhameja, Derivative Research Analyst at Samco Securities
Nifty Bank remains caught in a consolidation phase, with recovery attempts repeatedly facing selling pressure at higher levels. The index continues to hold above the 200-DEMA near 56,750, keeping the broader structure constructive, while 57,027 remains the immediate support. The 57,570–57,750 zone has emerged as the key supply area, and only a sustained breakout above this range could trigger meaningful follow-through towards 58,025–58,268.
Derivatives positioning further supports a range-bound outlook, with Put writers defending 57,000, while Call writers remain active at 57,500–58,000, limiting upside attempts.
Overall, the setup remains neutral and range-bound. A decisive breakout above 57,750 would strengthen the bullish case, while a break below 57,027 could revive selling pressure. Until a clear breakout emerges, a wait-and-watch approach remains preferable to chasing moves within the range.
Strategy: Traders can look to initiate long positions in Nifty Bank September Futures once it crosses above the 57,750–57,800 zone, while keeping a strict stop-loss below 57,500. On the upside, profit-booking targets are placed in the 58,150–58,200 range.
Jay Mehta, Technical Research at JM Financial Services
Bank Nifty continues to trade within the same broader range that has been in place for more than two months, between 56,500 and 58,500. In Wednesday’s session, it found support near the 200-day EMA and showed some positive traction but remains confined within this range.
From a structural perspective, Bank Nifty is relatively better placed than the Nifty as it continues to hold above its medium-term and long-term moving averages, which are attracting bargain buying at lower levels.
However, short-term momentum remains completely neutral, with no clear directional trend visible. On a positional basis, the setup remains bullish to mildly neutral as long as the price holds above 56,500 on a closing basis. A sustained close below 56,500 would be required to shift the positional bias from bullish to negative.
Strategy: Range trading between 56,500 and 58,500 is preferred by deploying an iron condor strategy in Bank Nifty.
Sachin Gupta, VP – Technical Research at Choice Equity Broking
On the daily chart, Bank Nifty formed a bearish pin bar candle, reflecting rejection from higher levels and selling pressure during the session. The index has also closed below its 20-day EMA, weakening the near-term technical structure and indicating that upside may remain capped unless the index reclaims the moving average.
Immediate support is placed at 56,900–57,100, while resistance is seen around 57,600–57,800. As long as Bank Nifty remains below the 20-day EMA and faces rejection near the resistance zone, the near-term bias is likely to remain cautious, with the index expected to remain under pressure.
Bank Nifty September Futures, currently trading around 57,670, has faced rejection near the previous major resistance level of 58,000, indicating selling pressure at higher levels. The immediate support is placed in the 57,100–57,300 zone, while the 58,000–58,200 range is likely to act as a key resistance area. The broader short-term structure remains corrective, and a sell-on-rise approach may be preferred as long as the index remains below the upper trendline resistance.
Strategy: Sell Bank Nifty Futures on a rise around 57,800–58,000, with a stop-loss at 58,200 on a closing basis.
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