Nifty: 24,200 Key Support to Watch
Dhupesh Dhameja,
Derivatives Research Analyst,
SAMCO Securities
Mumbai, 7 May 2026: Nifty index today traded in a narrow range with a marginal negative bias and closed at 24,326.65 (-0.02%), indicating consolidation after the recent sharp recovery.
Derivatives Analysis Report
Nifty Shows Healthy Consolidation Above Breakout Level
On the daily chart, the index continues to sustain above the 0.50 Fibonacci retracement zone (~24,250) and its 50-DEMA, highlighting improving short-term structure and continued buying support at lower levels.
Technically, the index is witnessing consolidation near the breakout zone, suggesting healthy absorption after the recent up move rather than aggressive profit booking. The price structure continues to form higher lows, reflecting sustained bullish undertone despite lack of strong momentum follow-through. The RSI is hovering near 55, indicating positive momentum with gradual strengthening in buying participation. Meanwhile, India VIX slipped further near 16.6, reflecting easing volatility and improved market stability.
From a derivatives perspective, PCR stands near 1.00, indicating a balanced-to-positive undertone. Option data shows significant call writing around 24,400–24,500, capping immediate upside, while put writing near 24,200–24,000 is providing a strong support base.
Overall, the index continues to trade with a constructive bias above the breakout zone, and as long as it sustains above 24,200, buy-on-dips strategy remains favorable. A decisive move above 24,500 could extend the recovery towards 24,750–24,900 in the coming sessions.
Nifty Bank Holds Above 56,000
Nifty Bank index traded in a narrow range with a slight positive bias and closed at 56,047.40 (+0.12%), indicating consolidation after the recent sharp recovery. On the daily chart, the index continues to sustain above the 0.50 Fibonacci retracement zone (55,800), highlighting stability in the ongoing pullback structure. The index has also reclaimed its 50-DEMA, suggesting improvement in short-term momentum, while the 200-DEMA placed near 56,590 continues to act as a major resistance hurdle for the broader trend reversal.
Technically, the index is witnessing price consolidation near key resistance levels, indicating healthy absorption rather than aggressive profit booking. The formation of higher lows from the recent swing bottom reflects sustained buying interest at lower levels, keeping the recovery structure intact. RSI is hovering near 53, indicating gradual improvement in momentum and strengthening participation from the bullish side.
From a derivatives perspective, PCR stands near 0.90, reflecting a balanced undertone with mild positive bias. Option data shows aggressive call writing around 56,000–56,500, capping immediate upside momentum, while steady put writing near 55,500–55,000 is providing a strong support cushion on declines.
Overall, the index continues to trade with a constructive undertone above the breakout zone, but a decisive move above the 200-DEMA and 57,000 mark is crucial for continuation of bullish momentum towards 57,500–58,000. Until then, the index may continue to witness a broader consolidation with stock-specific action dominating the banking space.
Technical Analysis Report
Nifty Oscillating in the Broader Range
Om Mehra, Technical Research Analyst, SAMCO Securities
Nifty ended the session almost flat at 24,326.65, down 0.02%, after opening at 24,398.50 and attempting to push toward the 24,500 mark, with an intraday high of 24,482.10. However, selling pressure emerged at higher levels, and the index retraced, reflecting mean reversion after the previous session's strong advance.
The daily chart formed a candle with wicks on both sides, indicating indecision near the 50% Fibonacci retracement level placed at 24,300. The index continues to hold above this zone on a closing basis.
Nifty also remains above the 50-SMA, keeping the short-term setup intact.
On the hourly chart, the index is trading between the middle and upper Bollinger Bands. The index might be building a base before the next directional move.
The RSI is placed near 55, sustaining above the neutral zone. The MACD remains in positive territory, with the histogram holding firm.
India VIX settled at 16.62, indicating cooling volatility.
On the upside, the 24,480–24,550 zone remains the immediate resistance band. On the downside, the 24,200–24,100 zone remains the immediate support band. The near-term trend remains positive as long as Nifty sustains above 24,050 on a closing basis.
Nifty Bank ended the session at 56,047.40, gaining 0.12%, as the index traded in a narrow range and closed marginally higher. The daily chart formed a small-bodied candle with wicks on both sides.
The index is now holding above the SMA on a closing basis, indicating a positive outlook.
Nifty Bank is positioned between the middle Bollinger Band and the upper band, leaving room for further upside if the index sustains above current levels.
On the hourly chart, the index remains above the Supertrend.
The RSI is placed near 53, sustaining above the neutral zone. The MACD remains in positive territory, with the histogram holding steady.
Nifty Private Bank gained 0.30% to close at 26,781.85, while Nifty PSU Bank declined 0.49% to settle at 8,636.60, indicating a slight divergence within the banking space.
On the upside, the 56,350–56,500 zone remains the immediate resistance band. On the downside, the 55,800–55,500 zone remains the immediate support band.
