According to Bajaj Broking, Indian benchmark indices traded higher on Tuesday, in line with Asian peers, as investors were encouraged by progress in US trade talks. Market participants are now waiting for the Federal Reserve's policy decision in the United States to provide additional guidance. The Sensex closed at 82,380.69, up 594.95 points (0.73%), while the Nifty50 rose 169.90 points (0.68%) to 25,239.10.

On the sectoral front, buying interest was widespread, with Nifty Auto, Realty, IT, and Media emerging as standouts, indicating strong rotational support across high-beta sectors. However, FMCG and Healthcare underperformed, indicating potential profit at higher levels. The broader market also saw strong participation, with the Nifty Midcap 100 up 0.54% and the Nifty Smallcap 100 up 0.95%, indicating continued strength in the mid-to-small cap space.

Nifty Outlook

The index has formed a sizable bull candle with a higher high and higher low, indicating that the upward trend will continue. The index saw follow-through strength following a bullish crossover of the 20- and 50-day EMAs in the daily chart, as highlighted in the previous edition. The Nifty closed yesterday at the resistance levels of 25,200-25,250. A decisive close above 25,250 would signal a reversal of the current corrective phase, potentially unlocking further upside to the 25,500 levels in the coming weeks. Failure to sustain above 25,250 will result in some consolidation between 25,250 and 24,850. On the downside, immediate support is seen near the 24,850 levels, which are the confluence of the 20- and 50-day EMAs and the recent trendline breakout area; holding above the same will keep the bias positive.

Bank Nifty Outlook

For the tenth consecutive session, the Bank Nifty formed a bull candle with a higher high, signaling an extension of the pullback. The index in the process closed above the 50-day EMA. The index in the process closed above the recent breakdown area of 54,800-55,000, indicating strength. A follow-through strength above Tuesday's high will allow for further upside towards 55,500 initially, and then to the 56,000-56150 levels in the coming sessions, which represent the 61.8% retracement of the entire decline (57628-53561). On the downside, immediate support is seen at 54,700, which is the 20- and 100-day EMA. While key support is placed at 54000 levels, which are the confluence of the previous week's low and a key retracement of the current pullback.

Also Read: Market Closing Commentary by Bajaj Broking & MOFSL

Motilal Oswal Financial Services Limited

According to Siddhartha Khemka, Head of Research, Wealth Management, Motilal Oswal Financial Services Ltd, the Nifty rose 170 points (+0.68%) on Tuesday to close at 25,239, as investors remained optimistic ahead of the US Federal Reserve's monetary policy decision on Wednesday, September 17. The broader indices also rose, with the Nifty Midcap100 up 0.5% and the Smallcap100 up nearly 1%, indicating strength in the smallcap sector.

Most indices closed in the green. Nifty Auto led the rally, rising approximately 1.5%, followed by Realty (+1%). FMCG was the sole laggard, falling 0.3%. Within capital goods, the Central Electricity Authority (CEA) has seen its order pipeline expand in recent months, indicating a resurgence in demand. With companies pursuing HVDC and international opportunities and commodity costs falling, margins are expected to improve from FY26.

On the trade front, attention is focused on the upcoming meeting of India's and the United States' chief negotiators for stock-taking discussions on the proposed bilateral trade agreement (BTA). This is the first in-person discussion since 50% tariffs on Indian goods went into effect on August 27. Global attention is on key U.S. macroeconomic data, with retail sales due later today, followed by the Fed's policy decision tomorrow, where markets expect the first rate cut since 2024.