Tuesday’s trading session began on a mildly optimistic note, with benchmark indices opening in positive territory. However, initial gains quickly faded as the session progressed, leading to a negative close for key indices. The overall market mood was cautious, driven by weak global cues, volatility surrounding the rescheduled F&O expiry, and profit booking by investors ahead of the upcoming GST Council meeting. Technical indicators showed signs of weakening momentum, with major indices slipping below short- and medium-term moving averages, although still holding above longer-term support levels.
Despite the weakness in frontline indices, broader market participation remained mixed. Several sectoral indices managed to close in the green, led by strong buying in public sector enterprises and select heavyweights in the energy and infrastructure space. On the flip side, private banking and financial services stocks were under pressure, dragging down the overall sentiment. Global markets offered little support, with Asian indices showing a mixed trend and US futures trading lower, further adding to investor uncertainty.
In this overview, we will analyse the key technical levels and trend directions for Nifty and BSE Sensex to monitor in the upcoming trading sessions. All the charts mentioned below are based on the 5-minute timeframe.
Nifty 50
(In this analysis, we have used 20/50/100/200 EMAs, where 20 EMA (Red), 50 EMA (Orange), 100 EMA (Light Blue), and 200 EMA (Dark Blue)).
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The Nifty 50 Index opened on a positive note at 24,653.00 on Tuesday, up by 27.95 points from Monday’s closing of 24,625.05. The Nifty Index, which began the morning session on a bullish note, surged and consolidated above the 24,700 mark. The Index was traded above its opening level at 24,738 and traded above all four EMAs of 20/50/100/200 in the 15-minute time frame. In the morning session, the index was traded in a range-bound between 24,600 and 24,750.
Later, in the afternoon session, the index lost its momentum and pulled down from the 24,750 level to the 24,550 level; the Nifty Index held below the 24,600 level, trading in red. Overall, the Tuesday session saw the Nifty 50 on a mixed note. During the afternoon session, the Nifty 50 was traded below all four EMAs of 20/50/100/200 in the 15-minute time frame. Nifty’s immediate resistance levels are R1 (24,668), R2 (24,755), and R3 (24,899), while immediate support levels are S1 (24,405), S2 (24,227), and S3 (24,057).
The Nifty index had reached a day’s high at 24,756.10 and saw a day’s low at 24,522.35. Finally, it had closed at 24,579.60, in red below the 24,600 level, losing 45.45 points, or 0.18%. The Nifty 50 closed below the 20/50/100 EMAs but remained above the 200 EMAs in the daily time frame.
Momentum Indicators:
RSI (Daily): The Nifty 50’s RSI stood at 44.36, which is well below the overbought zone of 70, but closer to the oversold zone of 30.
Bollinger Bands (Daily): Nifty 50 is currently trading above the lower band and approaching the middle band (Simple Moving Average), reflecting cautious investor sentiment amid ongoing geopolitical tensions. A sustained move above the middle band could signal a potential bullish shift, while a drop back toward the lower band may reinforce bearish sentiment.
Volume Analysis: Tuesday’s trading session was accompanied by average volumes (271.56 Mn), reflecting institutional and retail-led profit booking.
Derivatives Data: Options OI indicates strong Put writing at 24,550, establishing it as a firm support zone. On the upside, a significant Call OI buildup at 24,600 and 24,700 suggests a potential resistance supply. PCR (Put/Call Ratio) stands at 0.9014 (<1), leaning bullish but not overheated.
Bank Nifty
(In this analysis, we have used 20/50/100/200 EMAs, where 20 EMA (Red), 50 EMA (Orange), 100 EMA (Light Blue), and 200 EMA (Dark Blue)).
The Bank Nifty Index started the session on a positive note at 54,038.25 on Tuesday, up by 35.8 points from Monday’s closing of 54,002.45. The index began on a bullish note and surged to the 54,150 mark and traded above its opening level at 54,047. The Index later consolidated and sustained above the 54,000 level and was traded below the EMAs of 100/200 but remained above the 20/50 EMA in the 15-minute time frame and was trading between the 53,900 and 54,150 levels in the morning session.
The Bank Nifty index further lost its momentum and plunged to the day’s low at the 53,578 mark during the afternoon session and traded in the red. During the afternoon session, Bank Nifty closed below all four EMAs of 20/50/100/200 in the 15-minute time frame. Bank Nifty immediate resistance levels are R1 (54,097), R2 (54,541), and R3 (55,067), while immediate support levels are S1 (53,595), S2 (53,145), and S3 (52,783).
The Bank Nifty index had peaked at 54,160.95 and made a day’s low at 53,578.00. Finally, it had closed in red at 53,661.00, breaking below the 53,700 level, losing 341.45 points or 0.63%. The Relative Strength Index (RSI) stood at 30.72 and was near the oversold zone in the daily time frame, and Bank Nifty closed below the EMAs of 20/50/100 but remained above the 200 EMA in the daily time frame.
Sensex
(In this analysis, we have used 20/50/100/200 EMAs, where 20 EMA (Red), 50 EMA (Orange), 100 EMA (Light Blue), and 200 EMA (Dark Blue)).
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The BSE Sensex Index opened on a positive note at 80,520.09 on Tuesday, up by 155.6 points from Monday’s closing of 80,364.49. The Index was more volatile in the morning session; after a bullish start, the Index surged above the 80,750 mark and was trading above its opening level in the morning session at 80,725. The Index was traded above the EMAs of 20/50/100 EMA but remained below the 200 EMA in the 15-minute time frame and was trading between 80,400 and 80,750 in the morning session.
The Sensex Index lost its momentum and plunged to the 80,000 mark in the afternoon session, but held above the 80,150 mark, maintaining its overall mixed trend, and was trading below all four EMAs of 20/50/100/200 in the 15-minute time frame. BSE Sensex immediate resistance levels are R1 (80,472), R2 (80,770), and R3 (81,198), while immediate support levels are S1 (79,997), S2 (79,343), and S3 (78,784).
The BSE Sensex index had peaked at 80,761.14 and made a day’s low at 80,008.50. Finally, it had closed at 80,157.88 in red, losing 206.61 points, or 0.26%. The Relative Strength Index (RSI) stood at 41.95 (below the overbought zone of 70 but nearing the oversold zone in the daily time frame), and the BSE Sensex closed below the EMAs of 20/50/100 but remained above the 200 EMA in the daily time frame.
India VIX
The India VIX increased by 0.11 points or 0.95%, from 11.29 to 11.40 during Tuesday’s session. An increase in the India VIX indicates heightened market uncertainty and price fluctuations in the Stock Market.
Market Recap on the 2nd of September 2025
Tuesday’s trading session began on a positive note, with broader market indices showing modest gains in early trade, but eventually ended in the red. The Nifty 50 opened slightly higher at 24,653, up 27.95 points from the previous close of 24,625.05, but declined throughout the session to close at 24,579.6. This marked a fall of 45.45 points, or 0.81%, with the index finishing below the 20-day, 50-day, and 100-day EMAs, although it remained above the 200-day EMA on the daily chart. The BSE Sensex followed a similar pattern, opening at 80,520.09, an increase of 155.6 points from the previous close of 80,364.49, but closing lower at 80,157.88. This represented a decline of 206.61 points or 0.26%.
Momentum indicators reflected weakening sentiment, with the Nifty 50’s Relative Strength Index (RSI) at 44.36 and the Sensex RSI at 41.95, both well below the overbought threshold of 70. The Bank Nifty Index also mirrored this downward trend, closing at 53,661 after shedding 341.45 points or 0.63%. The decline came amid weak global sentiment, increased market volatility due to the Nifty F&O expiry being advanced to Tuesday, and profit booking ahead of the GST Council’s decision scheduled for September 4.
Despite the broader market weakness, most sectoral indices ended the day in the green. The Nifty CPSE Index emerged as the top gainer, closing at 6,311.65, up by 79.20 points or 1.27%. Cochin Shipyard Ltd led the gains with a 3.88% rise, followed by Power Grid Corporation Ltd with a gain of 2.45% and NTPC Ltd, which rose 1.7%.
The Nifty PSE Index was also among the top performers, ending the session at 9,475.25, up by 108.85 points or 1.16%. RVNL Ltd surged 5.12%, followed by NMDC Ltd, which gained 4.57%, and Power Grid Corporation Ltd, which added 2.45%. Other indices, including Nifty FMCG, Nifty Energy, and Nifty Media, also posted gains of up to 1.12%.
On the downside, the Nifty Private Bank Index recorded the steepest loss, declining by 182.75 points or 0.7%, to close at 26,089.70. Kotak Mahindra Bank Ltd was the biggest drag, falling 1.33%, followed by ICICI Bank Ltd, which declined 1.19%, and HDFC Bank Ltd, with a loss of 0.64%. The Nifty Financial Services Index also ended lower at 25,572.95, down 170.55 points or 0.7%. Key laggards included SBI Cards & Payment Services Ltd, Cholamandalam Investment and Finance Company Ltd, and Kotak Mahindra Bank Ltd, with share price declines of up to 2.15%.
Asian markets traded on a mixed note. The Shanghai Composite Index closed at 3,858.13, down 17.39 points or 0.45%. In contrast, South Korea’s KOSPI Index closed at 3,172.35, up 29.42 points or 0.94%. Japan’s Nikkei 225 Index also closed higher at 42,310.49, a gain of 121.7 points or 0.29%. However, Hong Kong’s Hang Seng Index declined to 25,496.55, down 120.87 points or 0.47%, while the Shenzhen Component Index ended at 12,553.83, falling 275.11 points or 2.14%. Meanwhile, the US Dow Jones Futures were trading at 45,337, lower by 261 points or 0.57% as of 4.43 p.m. IST.
Trade Setup Summary
The Nifty 50 opened on a positive note at 24,653.00 on Tuesday and ended the day in the red below the 24,600 level at 24,579.60. A break below 24,405 could trigger further selling towards 24,227, while a break above 24,668 could trigger bullishness towards 24,755.
Bank Nifty started the session on a positive note at 54,038.25 but ended the session in the red at 53,661.00, below the 53,700 level. A break below 53,595 could trigger further selling towards 53,145, while a break above 54,097 could trigger bullishness towards 54,541.
Sensex opened on a positive note at 80,520.09 on Tuesday and ended in the red at 80,157.88, breaking below the 80,200 level. A break below 79,997 could trigger further selling towards 79,343, while breaking the next resistance level of 80,472 could lead towards the 80,770 level.
Given the ongoing volatility and mixed sentiments, it’s advisable to avoid aggressive positions and wait for clear directional moves above resistance or below support. Traders should consider these key support and resistance levels when entering long or short positions following the price break from these critical levels. Additionally, traders can combine moving averages to identify more accurate entry and exit points.
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