Stock Market Outlook Today: Sensex, Nifty Poised for Breakout as Bulls Target 25,000; Buy on Dips Near Support

The Indian stock market is poised for a critical trading session today as investors digest recent macroeconomic developments, sector-specific momentum, and global cues. The Nifty 50, which closed the previous week 1.28% higher at 24,741.00, is currently consolidating just below its key psychological resistance of 25,000.

Stock Market Outlook Today, September 8, 2025

Meanwhile, Bank Nifty, which ended marginally higher at 54,114.55, has shown signs of resilience despite a mixed sectoral performance.

The week gone by was marked by positive sentiment stemming from GST 2.0 reforms, robust GDP data, and a steady inflow of domestic institutional buying. However, the upside remains capped amid foreign fund outflows, weakness in IT stocks, and global uncertainty.

Sensex, Nifty Prediction Today: Technical View By Experts

According to technical experts, the 24,950-25,000 zone now acts as an immediate resistance for the Nifty 50, while support lies in the 24,550-24,500 range. A decisive breakout beyond 25,000 could trigger a move toward 25,250, as suggested by Puneet Singhania, Director at Master Trust Group.

"Despite near-term volatility, the broader structure remains bullish. A 'buy-on-dips' approach near support levels is advisable, especially as Nifty holds above key moving averages," Singhania added.

The weekly options data supports this view, with the highest Call open interest at the 25,000 strike (1.86 crore contracts), marking it as a crucial resistance. Significant Call writing at the 25,100 and 25,400 strikes further indicates potential selling pressure if the index tests higher levels.

On the Put side, maximum open interest is seen at the 24,000 strike (1.31 crore contracts), which continues to provide a solid floor for the market. Fresh Put writing at the 24,650 and 24,800 strikes suggests bullish sentiment building at higher support zones.

Bank Nifty Prediction Today

Bank Nifty is trading in a tight range but holding above the crucial 53,500 support, signaling potential for a near-term uptrend. Immediate resistance lies in the 54,500-54,600 zone, with a breakout potentially pushing the index toward 55,300.

"The risk-to-reward ratio currently favors long positions in Bank Nifty, as long as it sustains above the 53,500 level. A breakout above 54,775 will be key to confirming upward momentum," said Sudeep Shah, Head of Technical & Derivatives Research at SBI Securities.

Stocks in Focus Today: Sector-wise Stock Trends

On Friday, the broader market showed resilience with Midcap and Smallcap indices gaining around 2.5% on the week, outperforming the benchmarks. However, sectoral performance remained mixed:

• Top Gainers: Nifty Auto, Metals, Media
• Top Losers: IT, FMCG, Realty

Among individual performers, Eicher Motors, M&M, and Shriram Finance led the gains, while ITC, Cipla, and HCL Tech were among the top losers.

Stock Market Weekly Prediction From September 8 to September 12; Check How Sensex, Nifty Will Trade This Week?

According to Mr. Puneet Singhania, Director at Master Trust Group, this week is expected to be pivotal for Indian markets, with the recent GST rate cuts likely to act as a short-term stimulus, boosting sentiment in consumption-driven and domestic demand sectors. While this relief may trigger sectoral rallies and counteract near-term tariff concerns, the broader market trajectory will largely depend on upcoming corporate earnings and the outcome of India-US trade negotiations.

Global cues, particularly China's August inflation data (forecast at -0.1% YoY), will also influence sentiment, given ongoing disinflation concerns in Asia's largest economy.

Technically, Nifty remains in a strong position after gaining 1.29% last week and holding above its key 21-week and 55-week EMAs. The index faces stiff resistance at 24,900-25,000, with a breakout potentially pushing it toward 25,250.Support levels are seen at 24,550 and 24,300.

Bank Nifty This Week Ahead

Bank Nifty, meanwhile, has shown resilience above 54,000 and is forming a base near 53,500. A breakout above 54,775 could drive it toward 55,300. Traders are advised to adopt a "buy on dips" strategy, especially near key support zones, as long as these levels are held as per the expert.

Macro & Global Watch: China Inflation Data on Radar

Global markets will be closely watching China's inflation data, scheduled for release on September 10, which is forecasted at -0.1% YoY, indicating continued disinflation amid weak domestic demand. Any negative surprise may influence global sentiment and risk appetite.

Domestically, GST rate cuts are expected to act as a near-term stimulus, potentially boosting demand in sectors such as consumer durables, auto, and FMCG. However, sustained market direction will depend on upcoming corporate earnings growth and progress on the India-US trade talks regarding tariffs.

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