Dhupesh Dhameja, 

Derivatives Research Analyst, 

SAMCO Securities

Mumbai, 5 May 2026: Nifty index witnessed mild profit booking during the session; however, a recovery from lower levels was evident, closing at 24,032.80 (-0.36%).

Derivatives Analysis Report

Muted Momentum in Nifty

On the daily chart, the index continues to hover below the 0.50 Fibonacci zone (24,200–24,250), aligned with the 50-DEMA, highlighting sustained supply at higher levels and restricting upside momentum.

On the downside, 23,800–23,750 (0.382 Fib) remains a strong demand zone, where consistent buying interest is emerging, keeping the broader structure range-bound despite intermittent weakness. The formation of lower highs indicates that rallies are being sold into, reflecting a cautious undertone.

RSI is hovering near 50, suggesting neutral momentum with no clear directional strength. From a derivatives standpoint, PCR stands near 0.93, indicating a mildly cautious bias. Option data shows call writing concentrated around 24,200–24,300, capping the upside, while Put writing near 24,000–23,800 continues to provide immediate support, reinforcing the ongoing range.

Overall, the index remains confined within 23,750–24,250. As long as it sustains below resistance, a cautious stance persists, making sell-on-rise the preferred strategy, while a decisive breakout will be key for the next directional move.

Nifty Bank: Lack of Buying Keeps Upside Limited

Nifty Bank index extended its weak trajectory and closed at 54,547.05 (-0.60%), marking the 8th consecutive session of lower close, reflecting sustained selling pressure and lack of follow-through buying.

On the daily chart, the index breached the key 0.382 Fibonacci level (54,400) intraday but managed to reclaim it by close, indicating buying interest emerging at lower levels.

However, the index continues to trade below its 20-DEMA, and the earlier support zone of 55,000–55,200 has now turned into immediate resistance, while the 0.50 Fibonacci zone (55,800) stands as a major hurdle, reinforcing a negative bias.

Structurally, the formation of lower highs and sustained supply on pullbacks suggests the trend remains weak. RSI is placed near 43–44, indicating subdued momentum and absence of strong bullish strength.

From a derivatives perspective, PCR stands near 0.83, indicating a mildly cautious undertone. Option data shows call writing concentrated around 55,000–55,500, capping the upside, while the Put writing near 54,500–54,000 is providing immediate support.

Overall, the index is trading with a negative bias within the 54,000–55,000 range. As long as it sustains below resistance levels, sell-on-rise remains the preferred strategy, while a decisive move beyond this range will set the next directional trend.