Nifty Gives Double Bottom Breakout Signals Further Upside

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Backed by strong broader market participation, banking resilience, and Fed cut hopes, Indian equities extended gains for a second week, with Nifty eyeing 25,500–25,600 levels.

By S JHA

MUMBAI, September 15, 2025 — Indian equities continued their upward streak last week, with the Nifty50 crossing 25,100 for the first time in eight weeks, reflecting a 1.51% weekly gain. The Sensex closed at 81,904.70, up 356 points, while the Nifty ended at 25,114.00, higher by 108.50 points. Gains were led by Auto, Metals, Pharma, and Telecom, though FMCG, Media, and PSU Banks lagged.

According to Angel One’s technical analysis, the Nifty has formed a constructive Double Bottom pattern alongside a breakout above a descending trendline on both daily and weekly charts. Over 80% of Nifty50 stocks now trade above their 5, 10, and 20 EMAs, underscoring strong breadth. Momentum indicators remain positive, with RSI at 61 and the index trading above its 10-week EMA.

The banking index also extended its gains, closing near 54,800, marking its second straight positive week. “Option data shows strong Put OI at the 25,000–25,100 strikes, suggesting a solid support zone, while resistance lies between 25,250–25,500,” said Angel One in a note to its clients shared on e-mail.

StockEdge noted that top gainers included Bharat Electronics, Bajaj Finance, Shriram Finance, Hindalco, and Bajaj Finserv, while HUL, Wipro, Trent, Eternal, and IndusInd Bank were major losers. Market optimism was further stoked by expectations of a potential US Fed rate cut and supportive domestic cues such as GST adjustments.

Analysts remain cautiously bullish, with Angel One projecting that a sustained breakout could propel the Nifty toward the 25,500–25,600 range in the near term, provided key supports around 25,000–24,900 hold firm.

(Disclaimer: This article doesn’t recommend any kind of trades in the stock market)

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