The market opened with strong optimism driven by positive sentiment around GST reforms, sparking a notable gap-up in key indices. However, the early enthusiasm quickly faded as concerns over persistent foreign institutional investor outflows and looming U.S. tariff issues weighed on investor confidence. The major indices gave up most of their intraday gains, indicating a lack of conviction among traders to sustain higher levels. Technical indicators showed the markets hovering around critical moving averages, reflecting indecision and a wait-and-watch approach by participants.
Sectoral performance was mixed, with the auto, consumption, and financial services segments showing resilience and attracting buying interest. This was led by select heavyweight stocks that posted solid gains. On the flip side, the defence and public sector enterprises came under pressure, dragging their respective indices lower amid profit booking and weak sentiment. Globally, Asian markets exhibited a mixed trend, reflecting regional uncertainty and external macroeconomic concerns, which also seeped into domestic sentiment. Overall, the market mood remained cautious with a slight positive bias, underscored by underlying macro and global risk factors.
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 gap up at 24,980.75 on Thursday, up by 265.7 points from Wednesday’s closing of 24,715.05. Although it started the morning session on a positive note, the Nifty Index did not sustain the 24,980 mark and was later dragged down to 24,800, fluctuating between 24,750 and 25,000. In the morning session, the Index traded below its opening level at 24,819 and was traded above all four EMAs of 20/50/100/200 in the 15-minute time frame.
Later, in the afternoon session, the index pulled down to the 24,700 level from the 24,800 level; the Nifty Index held above the 24,700 level, trading in green. Overall, the index ended in a mixed state on Thursday session. During the afternoon session, the Nifty 50 was traded above the EMAs of 50/100/200 but remained below the EMA of 20 in the 15-minute time frame. Nifty’s immediate resistance levels are R1 (24,838), R2 (25,020), and R3 (25,187), while immediate support levels are S1 (24,599), S2 (24,406), and S3 (24,232).
The Nifty index had reached a day’s high at 24,980.75 and saw a day’s low at 24,708.20. Finally, it had closed at 24,734.30, in green above the 24,700 level, gaining 19.25 points, or 0.078%. The Nifty 50 closed above the 20/100/200 EMAs but remained below the 50 EMAs in the daily time frame.
Momentum Indicators
RSI (Daily): The Nifty 50’s RSI stood at 49.09, which is well below the overbought zone of 70, but closer to the oversold zone of 30.
Bollinger Bands (Daily): The Nifty 50 is currently trading near its upper band and near to the middle band (Simple Moving Average). Its position in the upper range, along with solid support around the 24,700 level, suggests a mildly bullish sentiment. 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: Thursday’s trading session was accompanied by average volumes (314.09 Mn). The surge in volumes is a result of the rationalisation of the GST rate cut.
Derivatives Data: Options OI indicates strong Put writing at 24,700, following 24,600, establishing it as a firm support zone. On the upside, a significant Call OI buildup at 24,900 and 25,000 suggests a potential resistance supply. PCR (Put/Call Ratio) stands at 0.7336 (<1), leaning towards bullish sentiment and the long buildup signals a potential upward move.
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 gap up at 54,379.60 on Thursday, up by 312.05 points from Wednesday’s closing of 54,067.55. The index began on a bullish note and made its day’s high at the 54,450 mark. But later the Index did not sustain and was dragged down to the 54,250 mark and traded below its opening level at 54,248 in the morning session. The index was traded above the EMAs of 20/50/100 but remained below the EMA of 200 in the 15-minute time frame and was trading between the 54,100 and 54,450 levels in the morning session.
The Bank Nifty index further lost its momentum and plunged to the day’s low at the 53,972 mark but held above the 54,000 mark during the afternoon session and traded in the green. During the afternoon session, Bank Nifty closed above the EMAs of 50/100 but remained below the 20/200 EMAs in the 15-minute time frame. Bank Nifty immediate resistance levels are R1 (54,280), R2 (54,720), and R3 (55,248), while immediate support levels are S1 (53,974), S2 (53,569), and S3 (53,056).
The Bank Nifty index had peaked at 54,450.55 and made a day’s low at 53,971.85. Finally, it had closed in green at 54,075.45, breaking above the 54,000 level, gaining 7.90 points or 0.015%. The Relative Strength Index (RSI) stood at 37.28 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 gap up at 81,456.67 on Thursday, up by 888.96 points from Wednesday’s closing of 80,567.71. The Index was more volatile in the morning session; the Index plunged below the 80,900 mark and was trading below its opening level in the morning session at 80,945. The Index was traded above all four EMAs of 20/50/100/200 in the 15-minute time frame and was trading between 80,800 and 81,450 in the morning session.
The Sensex Index further lost its momentum and was dragged down to the 80,600 mark in the afternoon session but held above the 80,700 mark, maintaining its overall mixed trend, and was trading above the EMAs of 50/100/200 but remained below the 20 EMA in the 15-minute time frame. BSE Sensex immediate resistance levels are R1 (81,049), R2 (81,452), and R3 (81,999), while immediate support levels are S1 (80,642), S2 (80,045), and S3 (79,364).
The BSE Sensex index had peaked at 81,456.67 and made a day’s low at 80,608.94. Finally, it had closed at 80,718.01 in green, gaining 150.30 points, or 0.19%. The Relative Strength Index (RSI) stood at 47.46 (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 decreased by 0.078 points or 0.71%, from 10.93 to 10.85 during Thursday’s session. A decrease in the India VIX typically indicates lower expected volatility in the stock market, suggesting a calmer and more stable market environment.
Market Recap on the 4th of September 2025
On Thursday, the Nifty 50 opened with a strong gap-up at 24,980.75, rising 265.7 points from its previous close of 24,715.05. It touched an intraday high at the same level but gave up most of its gains to end nearly flat at 24,734.30, registering a modest increase of 19.25 points or 0.08%. Technically, the index closed below its 50-day EMA and near the 20-day EMA, while remaining above the 100-day and 200-day EMAs on the daily chart. The BSE Sensex followed a similar trajectory, opening higher at 80,295.99, up 888.96 points from the previous close, and eventually settling at 80,718.
Momentum indicators reflected caution, with the Nifty 50’s Relative Strength Index (RSI) at 49.09 and the Sensex’s RSI at 47.46, both well below the overbought threshold of 70. The Bank Nifty Index also saw a positive start but ended flat, inching up just 7.90 points, or 0.01%, to close at 54,075.45. Markets opened higher on optimism around GST reforms, but early gains were pared by the end of the session amid persistent foreign institutional investor (FII) outflows and concerns over U.S. tariffs.
Among the sectoral gainers, the Nifty Auto Index was at the top, closing at 25,994.85, up by 219.40 points, or 0.85%. Mahindra & Mahindra Ltd was the major gainer, increasing by 6%, followed by TVS Motor Company Ltd, Eicher Motors Ltd, and Hero Motocorp Ltd, which rose by up to 1%. The Nifty India Consumption index followed the gains, closing at 12,358.70, up by 61.80 points, or 0.5%.
Stocks including Mahindra & Mahindra Ltd, Colgate-Palmolive (India) Ltd, Britannia Industries Ltd, and Apollo Hospitals Enterprise Ltd were the major gainers, rising by up to 6%. The Nifty Financial Services Index also remains one of the top gainers, closing at 25,853.4, up by 120.85 points, or 0.5%.
Among the major losers, the Nifty India Defence index plunged the most on Thursday’s trading session. The index decreased by -132.35 points, or -1.7%, closing at 7,545.25. Data Patterns (India) Ltd was the major loser, dropping -4.1%, followed by other defence stocks, including Garden Reach Shipbuilders & Engineers Ltd, BEML Ltd, and Cochin Shipyard Ltd, which declined by up to -3.9%. The Nifty CPSE Index also closed in red, closing at 6,247.75, losing -80.50 points, or -1.3%. Major losers include Cochin Shipyard Ltd, Oil India Ltd, SJVN Ltd, and Bharat Electronics Ltd, whose shares declined by up to -3.6%.
Asian markets showed a mixed trend on Thursday, with Hong Kong’s Hang Seng Index ending in red at 25,056, declining -287.43 points, or -1.15%. Following the same trend, the Shanghai Composite Index closed at 3,765.88, losing -47.68 points, or -1.27%. However, South Korea’s KOSPI Index closed in green at 3,200.83, up 16.41 points, or 0.51%. Japan’s Nikkei 225 Index also closed in the green at 42,533, up 594.11 points, or 1.4%. The US Dow Jones Futures were trading at 45,295.75, up 24.52 points, or 0.05%, as of 4:48 p.m. IST.
Trade Setup Summary
The Nifty 50 opened on a positive note at 24,980.75 on Thursday and ended the day in the green above the 24,700 level at 24,734.30. A break below 24,599 could trigger further selling towards 24,406, while breaking the next resistance level of 24,838 could trigger bullishness towards the 25,020 level.
Bank Nifty started the session on a positive note at 54,379.60 but ended the session in the green at 54,075.45, above the 54,000 level. A break below 53,974 could trigger further selling towards 53,569, while breaking the next resistance level of 54,280 could trigger bullishness towards the 54,720 level.
Sensex opened on a positive note at 81,456.67 on Thursday and ended in the green at 80,718.01, above the 80,700 level. A break below 80,642 could trigger further selling towards 80,045, while breaking the next resistance level of 81,049 could lead towards the 81,452 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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