Nifty: 23.8K hurdle caps upside momentum
Dhupesh Dhameja,
Derivatives Research Analyst,
SAMCO Securities
Mumbai, 22 May 2026: Nifty witnessed a choppy and range-bound week, as the benchmark continued to oscillate within the previous week’s trading range, reflecting lack of decisive follow-through momentum at higher levels.
Derivatives Analysis Report
Nifty consolidates within previous week’s range
The index closed at 23,719.30, up 64.60 points (+0.27%), but continued to trade below the falling 20-DEMA near 23,836, indicating persistent supply pressure and cautious sentiment in the broader market.
On the daily chart, the index is attempting to stabilize near the 23,600–23,500 support zone, while repeated rejection around 23,800 highlights strong overhead resistance and absence of aggressive buying conviction. The weekly structure also points toward consolidation after the recent corrective phase, suggesting the market is currently undergoing a time-wise correction rather than preparing for an immediate directional breakout.
Momentum indicators continue to reflect neutral undertones, with the daily RSI placed near 47.19 and weekly RSI around 42.69, indicating lack of strong bullish momentum despite selective recovery attempts. India VIX remained subdued near 17.82 despite a volatile trading week, signalling controlled volatility and absence of panic-driven selling pressure.
From the derivatives perspective, PCR stands near 1.01, reflecting balanced positioning between call and put writers. Significant call writing is visible near the 23,800–24,000 strike region, which continues to act as a strong resistance cluster, while put writers are actively defending the 23,500–23,300 zone, keeping downside risk protected for now. Overall, the broader structure suggests that the index remains trapped inside a wider consolidation band, and till the time Nifty sustains below the crucial 23,800 resistance zone, a cautious range-bound bias with stock-specific and range-trading approach is likely to remain the preferred strategy for the current market setup.
Nifty Bank stages recovery but struggles below 20-DEMA; 54,500 remains key hurdle
Nifty Bank witnessed a choppy yet recovery-driven week, as the index managed to stabilize after last week’s sharp selling pressure and closed at 54,055.35, up 615.95 points (+1.15%). Despite intermittent volatility, the index continued to trade inside the previous week’s range, reflecting lack of aggressive directional momentum.
On the daily chart, Nifty Bank is attempting to hold above the 0.50 Fibonacci retracement zone near 53,700, while the falling 20-DEMA placed near 54,360 continues to act as an immediate resistance hurdle. The weekly structure indicates recovery from lower levels, but sustained upside momentum is still missing as the index remains below key moving averages. Momentum indicators remain neutral, with daily RSI near 45.87 and weekly RSI around 42.50, indicating gradual improvement in momentum but absence of strong bullish strength.
From the Derivatives perspective, PCR stands near 0.74, highlighting a cautious undertone in the options segment. Significant call writing is visible near the 54,500–55,000 strike region, making it a strong resistance cluster, while put writers are actively defending the 53,500–53,000 zone, indicating support-based buying at lower levels.
Overall, the broader structure suggests that Nifty Bank index remains trapped inside a broad consolidation range, and till the time the index sustains below the 20-DEMA and the 54,500 zone, a cautious range-bound approach with stock-specific opportunities and range-trading strategy remains favourable for the current market setup.
Technical Analysis Report
Nifty Inches Higher for the Week, Bollinger Band Contraction Signals Impending Move
Om Mehra,
Technical Research Analyst,
SAMCO Securities
Nifty ended the session at 23,719.30, gaining 0.27%, with the open and low nearly at the same level. On the weekly timeframe, the index registered a modest gain of 0.32%, though the broader range-bound phase continued. The index is hovering around the 38.2% Fibonacci retracement placed near 23,650. Nifty now holds above the 50-day SMA but remains below the 20-day SMA placed at 23,869, indicating that the short-term setup is improving but it has not yet turned decisively positive.
The Bollinger Bands are contracting from the previous few sessions. A contraction in the bands typically precedes a directional move. The RSI is placed near 47, with the RSI and signal lines nearly converging, it reflects a neutral momentum setup. The advance-decline ratio remained favourable during the session, indicating broader participation is on the bullish side.
On the downside, the 23,550 level remains the immediate support, followed by 23,450. On the upside, the 23,880 zone, aligned with the 23.6% Fibonacci retracement, remains the immediate resistance, followed by 24,000. A sustained close above 23,880 would break the range and could trigger a move on the higher side.
Nifty Bank ended the session at 54,055.35, gaining 615.95 points or 1.15%, with the open and low nearly at the same level. The daily chart formed a strong bullish candle, closing above the 50% Fibonacci retracement placed around 53,700.
On the weekly timeframe, Nifty Bank gained 0.64% and formed a bullish piercing line pattern, signalling a potential shift in sentiment after the recent consolidation phase. The index now trades above the 10-day SMA but remains below the 20- and 50-day SMAs, indicating the recovery is in its early stages. The RSI is placed at 45 and has moved above its signal line, reflecting a gradual shift toward improving momentum.
On the downside, the 53,700 zone remains the immediate support, followed by 53,450. On the upside, 54,500 remains the first resistance, followed by 54,750. A close above the 54,600 confluence zone would strengthen the recovery and open the path toward higher levels.
