Nifty Prediction Today, September 18: Bulls Attempt Third Straight Gain; Key Support and Resistance Levels in Focus

Indian equity markets are likely to witness a cautious start on Friday, with global cues remaining mixed. The Nifty 50 has shown signs of recovery after the recent decline, gaining for the second consecutive session. However, the index continues to face resistance near key technical levels, while elevated crude prices, foreign fund selling and global interest rate concerns remain important factors.

The immediate market direction will depend on whether the Nifty can sustain above the 23,400 zone. A decisive breakout above this level could strengthen the recovery attempt, while a breach of support near 23,100 may revive selling pressure.

Overnight Global Cues

Global markets ended higher on Thursday as investors assessed the US Federal Reserve’s latest policy decision and softer bond yields. The S&P 500 gained 1.1%, while the Nasdaq Composite advanced 1.7%, supported by recovery in technology stocks.

The US Federal Reserve’s 25 basis points rate hike, which lifted the policy rate to 3.75%-4%, remains a key factor for global markets. Although equities recovered after the decision, concerns over future monetary tightening continue to keep investors cautious.

Crude oil prices remained under focus, with Brent crude trading near $103.77 per barrel and WTI crude around $100.88 per barrel. Any further decline in oil prices could provide relief to oil-consuming sectors, although geopolitical risks continue to keep prices elevated.

Asian markets opened mixed, reflecting caution amid uncertainty over global monetary policy, currency movement and economic growth concerns.

GIFT Nifty and Likely Opening

GIFT Nifty indicated a muted opening for Indian equities. It was trading around 23,344, down nearly 11 points or 0.05%, suggesting a flat start for the domestic market.

On Thursday, the Nifty 50 opened below the 23,200 mark and formed an almost open equals to low candle. The index gradually moved higher during the session and touched an intraday high of 23,363.55 before profit booking emerged at higher levels. It closed at 23,270.60, gaining 53 points or 0.23%.

Nifty Support and Resistance Levels

The Nifty 50 has formed a higher high and higher low structure for the second consecutive session, indicating improving short-term momentum.

The immediate support zone for the index is placed at 23,115-23,118. As long as the Nifty holds above this range, the recovery attempt may continue. A break below this support could drag the index towards the 23,000-23,070 zone.

On the upside, the first resistance is placed near 23,400, which coincides with the 8-EMA. A sustained move above this level could push the index towards 23,500, followed by 23,600.

Technical Indicators and Trend

The short-term trend remains cautious as the Nifty continues to trade below its key short-term moving averages. However, momentum indicators are showing early signs of improvement.

The 14-period daily RSI remains in the oversold zone but has started recovering, indicating that selling pressure is reducing. The MACD histogram suggests that bearish momentum is weakening, while the index has moved back inside the Bollinger Bands after the recent decline.

A sustained move above resistance levels will be required for the recovery to gain strength.

Bullish and Bearish Scenarios

Bullish Scenario:
A decisive breakout above 23,400 could improve sentiment and open the path towards 23,500-23,600. Declining volatility and positive market breadth may support further recovery.

Bearish Scenario:
Failure to sustain above resistance levels and a breakdown below 23,100 could increase selling pressure, bringing the 23,000 level back into focus.

Stocks to Watch Today

• Bharat Forge
• InterGlobe Aviation
• Petronet LNG
• Bharat Electronics
• GPT Infraprojects
• Federal Bank
• PTC India
• NLC India
• Wipro
• PB Fintech

The Nifty’s ability to hold above 23,100 and move beyond 23,400 will remain crucial in determining whether the current recovery extends further or faces renewed selling pressure.