Dhupesh Dhameja, 

Derivatives Research Analyst, \

SAMCO Securities

Mumbai, 8 May 2026: Nifty index witnessed a highly volatile session and closed at 24,176.15 (-0.62%), reflecting profit booking near higher levels after the recent recovery rally. 

Derivatives Analysis Report

Nifty trades range-bound with cautious undertone

On the daily chart, the index slipped below the 0.50 Fibonacci retracement zone (24,250) but continues to hold firmly above the crucial 50-DEMA and the 0.382 Fibonacci support zone near 23,800, indicating that the broader recovery structure remains intact despite near-term volatility. The sharp intraday swings suggest ongoing tug-of-war between buyers and sellers, with volatility increasing near key resistance zones.

Technically, the index is consolidating after the recent breakout move, which indicates healthy absorption rather than a complete reversal of trend. The formation of higher lows on the daily chart continues to reflect buying interest at lower levels, while the inability to sustain above 24,250 highlights supply pressure at higher zones.

On the weekly timeframe, the index continues to trade below the broader resistance band of 24,600–24,750, keeping the medium-term structure range-bound despite improving undertones. RSI on the daily timeframe is hovering near 52, reflecting neutral-to-positive momentum, while weekly RSI is gradually recovering from lower levels, signaling improving market breadth. Meanwhile, India VIX slipped sharply towards 16.8, reflecting easing volatility and improved stability despite volatile intraday price action.

From a derivatives perspective, PCR stands near 0.79, indicating a cautious undertone with traders still maintaining defensive positioning. Option data shows aggressive call writing around 24,400–24,500, capping immediate upside momentum, while Put writing near 24,000–23,800 is providing a strong support cushion on declines.

Overall, the index continues to trade within a broader consolidation range, but as long as it sustains above the psychological 24,000 mark, the constructive undertone remains intact. A decisive move above 24,500 could trigger fresh momentum towards 24,750–25,000, while failure to hold 24,000 may invite renewed selling pressure in the coming sessions.

Nifty Bank: 54,400 remains key support

Nifty Bank index witnessed sharp volatility and closed at 55,310.55 (-1.31%), reflecting profit booking after the recent recovery rally. On the daily chart, the index slipped below the crucial 0.50 Fibonacci retracement zone (55,800) and the 50-DEMA, indicating weakening short-term momentum and supply pressure emerging at higher levels. However, the index continues to hold above the key 0.382 Fibonacci support zone near 54,400–54,500, which is acting as an immediate demand area for the ongoing structure.

Technically, the formation of lower highs near resistance zones highlights lack of aggressive follow-through buying, while repeated rejection near 56,000 suggests strong overhead supply. RSI on the daily timeframe has slipped near 48, indicating fading bullish momentum and a shift towards a neutral-to-cautious bias.

On the weekly chart, the index has formed a Doji candlestick pattern, reflecting indecision and a tug-of-war between buyers and sellers after a volatile recovery phase.

From a derivatives perspective, PCR stands near 0.84, indicating a cautious undertone in the near term. Option data shows aggressive call writing around 55,500–56,000, capping immediate upside momentum, while put writing near 54,500–54,000 is providing a strong support cushion on declines.

Overall, the index is trading within a broader consolidation range with heightened volatility. As long as the index sustains above 54,400, the broader recovery structure remains intact; however, a decisive move above 56,000 is required to revive bullish momentum towards 56,800–57,200. On the downside, a break below 54,400 could trigger fresh selling pressure and drag the index towards 53,800 levels.

Technical Analysis Report

Evening Star Signals Near-Term Pause in Nifty; Weekly Trend Remains Positive

Om Mehra, Technical Research Analyst, SAMCO Securities

Nifty ended the session at 24,176.15, declining 0.62%. On the daily chart, an evening star formation has emerged, signalling potential near-term exhaustion after the recent advance.

The index is now hovering near the middle Bollinger Band, placed at 24,150, which remains an important reference point for the near term. The upper Bollinger Band, placed near 24,540, capped the recent upside, triggering a pullback toward the mean.

The RSI has eased to 52, though the overall positioning remains above the neutral zone.

On the weekly timeframe, Nifty ended the week with a gain of 0.74%, forming a small-bodied candle with wicks on both sides, reflecting a balanced but indecisive week.

India VIX rose 1.32% to settle at 16.84, indicating a mild bounce after the recent decline.

On the upside, the 24,350–24,500 zone remains the immediate resistance band. On the downside, the 24,050–23,900 zone, aligned with the short-term moving averages, remains the immediate support zone.

Nifty Bank ended the session at 55,310.55, declining 1.31%. The open and high remained nearly at the same level, reflecting selling pressure from the start. The daily chart formed an evening star pattern, confirming a short-term reversal signal after the recent advance.

The index has slipped below the 20-Day and 50-Day simple moving averages. The RSI has declined to 48, moving below the neutral zone and its signal line, reflecting a shift in momentum after the recent recovery stalled near the 56,000–56,300 zone.

On the weekly timeframe, Nifty Bank ended the week with a gain of 0.82%, forming a candle with a long upper wick, suggesting rejection near the 50% Fibonacci retracement level placed at 55,900. The index remains confined within the 38.2% to 50% Fibonacci retracement band.

On the upside, the 55,800–56,000 zone, now aligned with the moving averages, remains the immediate resistance band. A close above this range would be required to negate the evening star signal. On the downside, the 55,000–54,800 zone remains the immediate support zone.