Dhupesh Dhameja, 

Derivatives Research Analyst, 

SAMCO Securities

Mumbai, 27 May 2026: Nifty witnessed another subdued and range-bound trading session, as the benchmark failed to attract strong follow-through buying and settled marginally lower by 6.55 points at 23,907.15 (-0.03%).

Derivatives Analysis Report

Nifty remains range-bound below 50-DEMA

The index continued to face resistance near the falling 50-DEMA placed around 23,998, indicating sustained supply pressure at higher levels and cautious sentiment among traders. Technically, the index remains in a time-wise consolidation phase after the recent recovery from lower levels. The 23,980–24,000 zone has emerged as an immediate resistance cluster, while the broader hurdle remains near the key 0.50 Fibonacci retracement level of 24,264.

On the downside, the previous resistance zone of 23,800–23,770 has now turned into an important support base, highlighting selective accumulation on dips. Momentum indicators are gradually stabilizing, with the daily RSI placed near 51.35, reflecting improving internal strength but lack of aggressive momentum expansion. India VIX declined sharply by 7.13% to 14.98, signaling easing volatility and controlled market conditions. From the derivatives perspective, PCR stands near 0.85, indicating a slightly cautious undertone. Significant call writing is visible in the 24,000–24,200 strike region, while put writers continue defending the 23,900–23,800 zone. Overall, the index remains trapped inside a broader consolidation band, and only a decisive breakout on either side of the range is likely to trigger the next directional move in the market.

Nifty Bank: consolidation continues below 50-DEMA

Nifty Bank witnessed a volatile yet range-bound trading session, where the index failed to sustain above higher resistance levels and eventually settled lower by 239.05 points at 54,853.85 (-0.43%). Despite intermittent recovery attempts, the index continued to face selling pressure near the falling 50-DEMA placed around 55,246, indicating that the broader short-term structure remains cautious.

Technically, the banking index continues to oscillate inside a broader consolidation band after the sharp corrective decline witnessed earlier. The 55,500–55,800 zone has emerged as an immediate resistance cluster, coinciding with the 0.50 Fibonacci retracement area, where repeated rejection highlights persistent overhead supply. On the downside, the support base has gradually shifted higher toward the 54,500–54,200 zone, as previous resistance levels are now acting as immediate support, reflecting selective buying interest on dips.

Momentum indicators are showing gradual improvement, with the daily RSI placed near 51.35, moving above its average and indicating stabilization in momentum despite the lack of strong directional expansion. From the derivatives perspective, the options data reflects a balanced-to-cautious undertone. PCR stands near 0.98, indicating relatively balanced positioning between call and put writers. Significant call writing is visible near the 55,000–55,500 strike region, making it a crucial resistance zone for the ongoing expiry, while put writers continue defending the 54,500–54,000 strikes, helping the index maintain its near-term support structure.

Overall, Nifty Bank remains trapped inside a broader consolidation range, and till the time the index sustains below the falling 50-DEMA and the 55,500 zone, a cautious range-bound approach with stock-specific opportunities remains the preferred strategy for the current market setup.

Technical Analysis Report

Nifty Holds within Rising Regression Channel;

VIX Drops Below 15 for the First Time since March

Om Mehra, Technical Research Analyst, SAMCO Securities
Nifty ended the session almost flat at 23,907.15, down just 0.03%, continuing to consolidate around the 24,000 zone. The daily chart shows the index trading within an upward-sloping regression channel, with the current positioning near the middle of the channel, indicating steady strength. The index is holding above the 20-day SMA and 50-day SMA, keeping the short-term setup intact. The RSI is placed near 51, sustaining above the neutral zone. The MACD line remains positive, reflecting continued improvement in medium-term momentum.

On the hourly chart, the index is holding firm near the 23,900–23,920 zone, with higher highs and higher lows. India VIX declined sharply by 7.13% to settle at 14.98, dropping below the 15 mark for the first time since the March correction began. On the downside, the 23,800–23,740 zone remains the immediate support area. On the upside, the 24,000–24,100 zone remains the immediate resistance area. The near-term outlook remains positive, with a buy-on-dip approach likely to remain intact as long as 23,670 is defended.

Nifty Bank ended the session at 54,853.85, declining 0.43%, after testing an intraday high of 55,221.70 and witnessing profit booking at higher levels. The index formed a candle with wicks on both sides, indicating indecision. The index continues to hold above the middle Bollinger Band, keeping the short-term recovery setup intact. The RSI is placed near 51, sustaining above the neutral zone. The MACD line remains in positive territory.

On the hourly chart, the index is consolidating in the 54,600–55,500 range. However, an unfilled gap zone is visible near 54,300, which may act as a potential target if the falling trendline is breached. On the upside, a sustained close above 55,200 would be required to open the path towards the 55,400–55,600 zone.