Persistent Selling Drags Nifty Bank Lower; Recovery Attempts Fail
Dhupesh Dhameja,
Derivatives Research Analyst,
SAMCO Securities
Mumbai, March 23, 2026: Nifty witnessed a sharp gap-down opening and extended selling pressure throughout the session, closing at 22,512.65 (-2.60%), decisively breaking below the crucial 23,000 psychological level.
Volatility Spikes
The breakdown has turned 22,800–23,000 into an immediate resistance zone, and unless reclaimed, any bounce is likely to be sold into. The index is now hovering near 22,500 support, a break below which could accelerate the decline toward 22,200, with broader structure reflecting continuation of the downtrend and lower-high formation.
Momentum remains weak with RSI deep in oversold territory, indicating strong bearish momentum, while India VIX surged nearly 17% to 26.7, highlighting elevated volatility ahead of expiry. The sharp rise in volatility suggests wider swings and aggressive positioning from market participants.
From a derivatives perspective, PCR near 0.66 signals bearish undertone, with heavy call writing at 23,000 capping upside, while Put writers shifting toward 22,500 and 22,000, marks immediate and major supports respectively. With previous supports now acting as resistance and volatility elevated, sell-on-rise remains the preferred strategy, and unless 22,800–23,000 is reclaimed, downside pressure is likely to persist in the near term.
Persistent Selling Drags Nifty Bank Lower; Recovery Attempts Fail
Nifty Bank witnessed a sharp gap-down opening and extended selling pressure throughout the session, closing at 51,437.75 (-3.72%), decisively breaking below the crucial 52,000 support, which now turns into a major resistance zone. The index also failed to show any meaningful intraday short covering, highlighting persistent selling interest.
Immediate resistance is now placed at 52,000–53,000, while the index is hovering near 51,250 support; a breakdown below this could accelerate downside toward 50,600.
Technically, the structure remains weak with a series of lower highs and lower lows, while RSI continues in deep oversold territory, reflecting strong bearish momentum. On the hourly chart, the index is trading below its 10-EMA and 20-EMA, confirming continuation of the short-term downtrend with elevated volatility.
From a derivatives perspective, PCR near 0.74 indicates cautious sentiment, with strong call writing at 52,000 capping upside, while Put writers shifting toward 51,000 marks it as the next major support. With previous supports turning into resistance and volatility elevated, sell-on-rise remains the preferred strategy, and unless 50,650 is reclaimed, downside pressure is likely to persist in the coming sessions.
Technical Analysis Report
Nifty under Strain as Market Breadth Turns Decisively Negative
Om Mehra, Technical Research Analyst, SAMCO Securities
Nifty ended the session at 22,512.65, declining 2.60%, extending the ongoing losing streak as the index opened with a gap-down and remained under pressure throughout the session. The decline was broad-based, with no sector closing in positive territory, reflecting widespread weakness.
On the daily chart, Nifty has formed a strong bearish candle. The index is now approaching a key support area near 22,200–22,000, which also coincides with a rising long-term trendline. The index continues to trade well below its key moving averages, highlighting sustained weakness in the broader setup.
The RSI has declined further and is now placed near oversold levels, indicating stretched conditions; however, there are no signs of reversal yet.
The sharp expansion in volatility, with India VIX rising 17.17% to 26.73, reflects heightened uncertainty and the possibility of wider price swings in the near term.
USD-INR remains under pressure, touching a fresh record low near 94.01.
Nifty has declined more than 10% so far in March, marking one of the sharpest monthly corrections since the COVID-led fall.
Unless Nifty reclaims the 23,000–23,200 zone on a closing basis, weakness may persist. The broader trend remains corrective, and any short-term rebounds are likely to face resistance at higher levels.
Nifty Bank ended the session at 51,437.75, declining 3.72%, as the index extended its sharp downtrend with a gap-down opening and continued selling pressure throughout the session. The move reflects weakness across the banking space, with heavyweights continuing to drag the index lower.
On the daily chart, Nifty Bank has formed a strong bearish candle, marking the continuation of the ongoing decline. The index has now decisively broken below the crucial 53,000 support zone and is approaching the next important support area near 51,000, which coincides with a prior base formation zone.
The index remains well below its key moving averages, while the RSI stands near 24, indicating deeply oversold conditions. The visible gap zones on the chart have now become critical resistance areas. The immediate hurdle is placed around 52,800–53,200, followed by a stronger resistance band near 54,500, where earlier breakdowns occurred.
The index may continue to remain under pressure. The broader setup remains firmly corrective, and short-term rebounds are likely to be used as selling opportunities.
