On the daily chart the index has formed a bearish candle with a lower high and lower low, indicating continuation of the decline for the fifth session in a row.

A notable technical development is that the index is undergoing a mean-reverting pullback over the past six sessions, which has dragged the Nifty towards its 50-day EMA, coinciding with a 50% Fibonacci retracement of the prior impulsive up move (24,405 to 25,448). This corrective phase has also resulted in the daily stochastic oscillator slipping into oversold territory. However, only a formation of higher high and higher low in the daily chart will signal a pause in the current corrective trend.

Nifty is currently placed around the immediate support area of 24,900 being the presence of 50-days EMA and key retracement area. A sustained breach below the support area of 24,900 will signal extension of the decline towards 24,700 levels being the confluence of the 100 days EMA and 61.8% retracement of previous up move.

Bank nifty Outlook

Bank Nifty formed a bearish candle with a lower high and lower low on the daily chart, indicating extension of the corrective decline. The index appears to be unwinding its overbought conditions following a sharp 2,300-point rally over the past three weeks.

Bajaj Broking expects the index to continue consolidating within the 54,700–56,000 range in the near term. Immediate support is seen at 54,700–54,900, which aligns with last week’s low and the 20-day EMA. A more significant support level is placed near 54,000, representing a key retracement level of the recent rally.

Bajaj Broking's broader view remains positive, and we believe the current consolidation phase offers a buying opportunity within the ongoing uptrend. On the upside, the index faces initial resistance near the 56,000 mark. A decisive breakout above this level could pave the way for a fresh uptrend, potentially targeting the 57,000 level in the coming weeks.

Motilal Oswal Financial Services Ltd 

Indian equity extended losses for the fifth straight session on Thursday, with Nifty falling below the 25,000 mark. Sentiment was weighed down by persistent foreign fund outflows and concerns over U.S. visa curbs. 

The Nifty ended 166 points lower (-0.7%) at 24,890. The broader markets mirrored the benchmark, with Nifty Midcap100 and Smallcap100 down ~0.6% each. Sectorally, most indices closed in red, with Realty and IT stocks leading the declines. Metals was the sole gainer, up 0.22%, supported by strong rallies in Hindustan Copper, Vedanta, Hindalco, and Hindustan Zinc. The Nifty Metal index has surged 11% so far in September. Copper futures hit record high of Rs 963.45/kg over global supply concerns, following a major supply disruption at a large Indonesian mine. On the global front, investors remain cautious ahead of key U.S. economic releases, including GDP and initial jobless claims later today, followed by the PCE price index (a key gauge of U.S. inflation) due Friday.

"We expect markets to remain under pressure in the near term, tracking global headwinds, macroeconomic data releases, and developments around the India–U.S. trade talks. Concerns over economic growth persist amid the impact of rising global commodity prices, weakening Rupee and U.S. tariffs adding to investor caution", says Siddhartha Khemka - Head of Research, Wealth Management, Motilal Oswal Financial Services Ltd.

Also Read: India & US Continue Trade Talks Across Multiple Levels: Official

Ashika Institutional Equities

Indian markets ended lower on Thursday after a weak start, with Nifty witnessing a slow and steady decline throughout the session while largely trading sideways. Notably, the index slipped below the crucial 25,000 mark and managed to sustain beneath this key technical and psychological level, raising concerns of further weakness ahead.

Investor sentiment remained fragile as worries over the proposed hike in US H-1B visa fees continued to dampen risk appetite. On the derivatives front, notable activity was observed in counters such as Marico, Naukri, Syngene, Crompton, and Axis Bank, indicating stock-specific opportunities despite the broader market weakness.