Nifty finds footing at 0.382 Fib
Dhupesh Dhameja,
Derivatives Research Analyst,
SAMCO Securities
Nifty index extended its weakness and closed at 23,997.55 (-0.74%), yet the price action continues to hold above the 0.382 Fibonacci support zone (23,770–23,750), where the index has witnessed a strong rebound, marking this zone as a crucial demand area. This suggests that despite near-term pressure, the broader structure is stabilizing within a range.
Derivatives Analysis Report
Nifty: range-bound structure dominates
On the daily chart, the index has faced rejection near the 0.50 Fibonacci zone (24,200–24,250), aligned with the 50-DEMA, indicating supply at higher levels. The setup reflects a range-bound structure, with resistance holding firm while support remains intact.
The RSI is hovering around 50, highlighting lack of strong momentum and a neutral bias.
From a derivatives perspective, PCR stands near 0.86, indicating a slightly cautious undertone. Option data shows call writing concentrated around 24,200–24,500, capping the upside, while the put writing near 23,800–23,500 continues to provide a strong support base.
On the weekly chart, the index remains below its 20-WEMA, signaling that the broader trend is still under pressure despite intermittent rebounds.
Overall, the index is consolidating within a defined range, with 23,750 acting as strong support and 24,250 as immediate resistance. A breakout on either side of this range will be key for the next directional move, till then a range trading strategy remains favorable.
Nifty Bank breakdown intact despite bounce
Nifty Bank index witnessed continued selling pressure and closed at 54,863.35 (-0.98%), reflecting weakness at higher levels after the recent pullback.
On the daily chart, the index continued to sustain below the 0.50 Fibonacci retracement zone (~55,800), confirming a breakdown from the prior consolidation range, with supply clearly dominating on every rise. However, on the downside, the index has found support near the 0.382 Fibonacci level (~54,400–54,200) and is showing signs of a short-term rebound, indicating that buyers are active at lower levels.
Despite this bounce, the broader structure remains weak as the index continues to form lower highs, suggesting that the recovery lacks strength. Technically, the index is trading below key moving averages, reinforcing a cautious bias. The RSI is hovering near 45, reflecting subdued momentum and absence of strong buying strength.
From a derivatives perspective, PCR stands elevated near 0.87, indicating a mildly supportive undertone but not strong enough to confirm bullish dominance. Option data shows call writing concentrated around 55,500–56,000, capping the upside, while put writing near 54,000–54,500 is providing immediate support, creating a defined trading range.
On the weekly chart, the index has formed a bearish candle after rejection from higher levels, indicating that the broader trend remains under pressure despite intermittent pullbacks.
Overall, the index is consolidating with a negative bias, and as long as it sustains below 55,800, sell-on-rise strategy remains favorable. A decisive break below 54,400 could accelerate downside towards 53,800–53,500, while a sustained move above 55,800 is required to negate the weakness and revive bullish momentum.
