Stock Market Outlook: Bullish Momentum May Continue; Will Nifty, Sensex Sustain Rally if Resistance Holds?

India's stock markets began the month of September on a strong footing, snapping a three-day losing streak and setting a positive tone for the days ahead. Investors returned to the markets with fresh optimism as strong domestic GDP data, consistent DIIs (Domestic Institutional Investors) buying and positive geopolitical cues improved sentiment.

Stock Market Outlook Today for September 2

Looking ahead to September 2, market participants are expected to monitor key resistance levels on both Nifty and Bank Nifty. If the Nifty manages to break past 24,740, the bullish momentum may continue. On the flip side, failure to hold 24,500 could invite profit booking.

On Monday, the benchmark Nifty 50 surged by 198 points to close at 24,625, reclaiming the psychologically important 24,600 mark, while the Sensex also gained sharply, buoyed by robust macroeconomic cues and strong domestic institutional flows.

The broader market outperformed the frontline indices, reflecting widespread investor participation. The Nifty Midcap 100 jumped 1.97%, while the Nifty Smallcap 100 rose 1.57%, highlighting strong momentum in the mid and small-cap segments.

Sector-wise Stocks Performance: Top Gainers and Losers

Out of the 50 stocks in the Nifty index, 42 ended in the green, reflecting broad-based buying interest. Sector-wise, the rally was led by Auto and IT stocks, driven by better-than-expected August sales figures. Key gainers included Bajaj Auto, Hero MotoCorp, Tata Motors, and Eicher Motors. Electric vehicle players like Ola Electric and Ather Energy also saw continued gains amid improved monthly registrations. On the flip side, Nifty Media and Nifty Pharma ended the session in the red.

The closure of U.S. markets for a public holiday also helped local markets move on their own momentum.

Sensex, Nifty Prediction Today: Bank Nifty Technical View

According to Sudeep Shah, Head of Technical and Derivatives Research at SBI Securities, the Nifty is now approaching a key resistance zone between 24,710 and 24,740. A sustained breakout above 24,740 could lead the index towards 24,900 in the near term. However, on the downside, immediate support lies between 24,500 and 24,470, and a breach of this level could trigger a fall towards 24,200.

The Bank Nifty index also staged a smart recovery after five straight sessions of decline, closing above the 54,000 mark with a 0.65% gain. Shah highlighted that the next resistance level lies between 54,300 and 54,400 and a breakout above this zone could push the index towards 54,900.

On the lower side, strong support exists between 53,500 and 53,600, which also aligns with the 200-day exponential moving average (EMA), a widely tracked technical indicator.

Providing a broader perspective, Pranay Aggarwal, Director and CEO of Stoxkart, said that Indian equities remained resilient, supported by strong GDP growth data that has lifted investor sentiment.

"Optimism also came from PM Modi's participation at the SCO Summit in Tianjin, where meetings with Xi Jinping and Putin signaled easing India-China tensions, boosting confidence among investors. Globally, a US appeals court ruling most of Trump's tariffs illegal, though still in effect till October 14, added trade optimism. Near term, the market looks bullish with banking, infra, and midcaps leading the momentum, though global trade policy and oil prices remain key risks," said Mr Aggarwal.

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