Despite Monday’s bounce, experts maintain a cautious view on markets. Immediate support is pegged at 24,400.
Indian equity markets began September on a positive note after India’s Q1 GDP growth came in at 7.8%, beating expectations. Auto and IT stocks led the rally, helping Nifty close above 24,600. However, the Indian Rupee hit a fresh all-time low of 88.33 against the US Dollar, and FII selling continued with net outflows of ₹1,429 crore, which remains a concern for sustained upside.
Will the Nifty index build on yesterday’s gains as the weekly expiry shifts to Tuesday? SEBI-registered analysts shared the trade setup for September 2 on Stocktwits.
Tuesday Trade Setup
Analyst Mayank Singh Chandel noted that, while Nifty bounced back after testing support levels on the daily chart, the broader trend remains weak. Immediate resistance is seen at 24,700, and sustaining above this level could trigger short covering towards 24,800, which aligns with the 50-day Exponential Moving Average (EMA).
Chandel identified crucial resistance at 24,850, the 38.2% Fibonacci retracement. A breakout above this zone could push the Nifty towards 25,000 – 25,150 (previous swing high). Unless the Nifty closes above 25,153, the broader structure remains a sell-on-rise, as the lower-high, lower-low formation remains intact, he added. Immediate support is seen at 24,400.
Options data indicate that heavy positions are being built up between 24,700 and 25,000, suggesting strong resistance zones. Meanwhile, significant Put writing at 24,400 makes it a make-or-break support for the session. With weekly expiry now shifted to Tuesday, volatility is likely to remain elevated.
He highlighted two trading scenarios for Tuesday. A bullish setup would be if the Nifty index sustained above 24,700, opening the path towards 24,800. A close above 24,850 could extend the rally to 25,000–25,150. In a bearish scenario, a fall below 24,400 opens the downside towards 24,000 – 23,800.
Bharat Sharma of Stockace Financial Services noted that there is no negativity in the system for Tuesday’s expiry session. Investors will also be monitoring the crucial GST Council meeting on September 3-4 for decisions on rate rationalization. Positionally, the Nifty index bounced back from the previous trough / bottom support at 24,350 and reclaimed the 100-day EMA. However, for a healthy reversal, there is room for a few convictions, so they maintain their cautious stance.
For Tuesday’s expiry session, on a 15-minute timeframe, Sharma flagged the inverse head & shoulders formation and expects a move towards the 24,720-24,730 levels. Immediate resistance is seen at 24,630-24,640, which, if breached, opens the path towards 24,680-24,720-24,800 and higher.
On the downside, immediate support is seen at 24,600, followed by levels at 24,580, 24,550, and 24,500. A short-side threat will be found below 24,500, where he expects another fall towards 24,460-24,400-24,350; however, the probability of such a scenario is very low.
Trading Strategy
Ashish Kyal said the Nifty index can form a triangle pattern within a broad range of 25,100-24,420, and it is likely to range within these levels with a weak trend on either side. Options implied volatility (IV) is low, but he advised that it’s still the better strategy to create a spread with options. Kyal said traders can keep scalping between 24,728 and 24,470 for Tuesday’s session.
Dipak Takodara said the short-term trend stays sideways and that Monday’s move was a pullback rather than a trend change. The candlestick pattern shows steady buying, but follow-through above the nearby moving averages is still needed.
He noted that Nifty is trading inside the right shoulder of the Head & Shoulders seen since May–August. The neckline is at around 24,300. The right-shoulder high is at around 25,150. Until Nifty closes above 25,150, this pattern remains live. A daily close below 24,300 would be the first proper breakdown signal from this pattern and can pull the index toward 24,150–24,000 next.
Key Levels to Watch:
• Support: 24,500-24,300; 24,150–24,000
• Resistance: 24,700-24,750; 24,800-24,850; 25,000-25,150
Takodara believes that on the upside, buyers need a push above 24,700–24,750 (20-DMA), then 24,800–24,850 (10-DMA), and 25,000–25,050 (50-DMA). A close above 25,150 would negate the Head and Shoulders pattern. On the downside, if 24,300 snaps on a closing basis, momentum would likely weaken toward 24,150–24,000.
Pradeep Carpenter flagged that derivative data indicates Nifty’s Put-Call Ratio (PCR) stood at 1.128, signaling a mildly bullish bias. For Nifty, resistance is seen at 24,700–24,800, with support at 24,400–24,500. The bias remains positive above 24,500, while a failure to hold could drag the index towards 24,360–24,290.
For Bank Nifty, resistance is seen at 54,400–54,800, and support at 53,600–53,000. Sustaining above 54,100 may trigger a move to 54,500–54,800, whereas a break below 53,760 could invite weakness towards 53,520–53,000.
He concluded that Nifty is expected to trade within 24,450–24,800, with a positive bias as long as 24,500 holds. Bank Nifty is likely to consolidate around the 54,000 strike, and direction will depend on a breakout on either side. Autos and Metals may continue to outperform, while Banks and FMCG could stay mixed. With VIX near historic lows, volatility will be controlled, but intraday swings around option levels can be sharp, Carpenter warned.
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