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Stock market recap: The Indian stock market started the week on a subdued note, slipping into the red on Monday, 15 September, as investors stayed cautious ahead of the US Federal Reserve’s policy meeting this week.

The BSE Sensex fell 119 points, or 0.15%, to close at 81,786, while the Nifty 50 slipped 45 points, or 0.18%, to end at 25,069. The decline snapped the Sensex’s five-day winning streak and brought the Nifty’s eight-session rally to a halt.

Indian equities ended Monday’s session on a weak note as the Nifty 50 slipped 44 points to close at 25,069, breaking its eight-day winning streak, while the Sensex lost 119 points.

The decline was led by weakness in IT and auto stocks, reflecting investor caution ahead of the US Federal Reserve’s policy outcome later this week. Sectoral performance was mixed, with the Nifty Realty index emerging as the top gainer, while a notable selloff was seen in the IT and Pharma sectors, which dragged the main indices lower.

Market breadth was positive, with advances outpacing declines, indicating underlying strength despite profit booking in key heavyweight stocks. The advance-decline ratio stood at approximately 1,714 advances to 1,357 declines on the NSE, suggesting a healthy interest in the broader market.

The Nifty 50 recently confirmed a breakout above the upper trendline of a symmetrical triangle pattern near 25,050, reinforcing the ongoing bullish structure. The index also decisively cleared key short-term resistance levels, notably the 50- and 100-DMA, which now act as important support zones. Post-breakout, price action has paused near 25,150, indicating a healthy consolidation at higher levels rather than immediate profit booking. Momentum indicators strengthen this constructive outlook.

The RSI has crossed above 59 following its own trendline breakout, reflecting improving strength, while the MACD has delivered a bullish crossover, adding further validation to upward momentum.

According to O’Neil’s methodology of market direction, the market status has been downgraded to an “Uptrend Under Pressure" as Nifty breached its 50-DMA, with the distribution day count at one.

The Nifty 50 faced stiff resistance near 25,150 and ended the session 45 points lower. On the upside, a decisive and sustained close above the 25,150–25,200 zone would be required to unlock further upside potential toward 25,300–25,350 in the near term.

On the downside, immediate support is placed in the 24,800–24,900 range. A breakdown below this zone could reintroduce selling pressure and drag the index toward 24,500–24,600, making these levels critical to monitor for the next directional move.

On Monday, Bank Nifty opened on a positive note but traded with notable volatility within a narrow range. The index formed a bullish candle on the daily chart, characterized by a higher-high and higher-low price structure. It continues to trend comfortably above its 21-DMA, signalling underlying strength.

However, a failure to sustain this support zone could trigger downside pressure, whereas holding above it may keep the index in a phase of sideways consolidation until a decisive breakout or breakdown emerges. During the session, Bank Nifty opened at 54,884.05, scaled an intraday high of 55,018.70, touched a low of 54,807.50, and eventually closed almost flat at 54,887.85, reflecting indecision among market participants.

Bank Nifty’s momentum indicators are sending mixed signals, reflecting a cautious market undertone. The RSI edged higher to 51, hinting at a slow but steady recovery, while the MACD flipped into positive territory with a crossover, though its position beneath the central line highlights that strength remains contained. According to O’Neil’s market direction framework, the index is categorized as being in an “Uptrend Under Pressure."

Bank Nifty is showing resilience as it approaches key resistance levels at 55,200–55,300. A sustained close above this zone could confirm the rebound and open room for a broader uptrend. On the downside, support lies at 54,000–54,200, with a breakdown likely to trigger fresh selling pressure. The index has reclaimed short-term moving averages and formed a bullish daily candle, indicating buyer strength. Follow-through momentum in the coming sessions will be crucial to validate a stronger trend reversal.

MarketSmith India is a stock research platform and advisory service focused on the Indian stock market. It offers tools and resources to help investors make informed decisions based on the CAN SLIM methodology, founded by legendary investor William J. O'Neil. You can access a 10-day free trial by registering on its website.

Trade name: William O’Neil India Pvt. Ltd.

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Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before making any investment decisions.

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