Nifty Rebounds But Fails To Hold Gap-Up Gains
Dhupesh Dhameja,
Derivatives Research Analyst,
SAMCO Securities
Mumbai, April 1, 2026: Nifty witnessed a relief rebound and closed at 22,679.40, up 348 points (+1.56%), recovering from oversold levels; however, the broader trend remains fragile as the index continues to trade below key resistance zones.
Derivatives Analysis Report
Volatility keeps recovery capped near 23,000
The recovery lacked strong follow-through and appears largely driven by short covering rather than fresh long build-up, indicating that the upside remains vulnerable.
Technically, the index managed to hold the 22,500–22,450 support band and moved toward 22,800–22,950, where supply emerged again. The index continues to trade below its falling short-term moving averages, suggesting that the primary trend remains under pressure.
Momentum indicators have improved marginally, with RSI recovering toward 37–40, but still sustaining below the bullish zone, indicating the rebound is corrective in nature. A sustained move above 22,950–23,000 is required to extend the recovery toward 23,200–23,400, while failure to hold 22,500 could again drag the index toward 22,250–22,000.
On the hourly chart, the index formed a lower-high structure and failed to sustain the gap-up opening, with prices giving up a portion of early gains, reflecting supply at higher levels and lack of sustained buying interest.
Heightened geopolitical developments continue to influence price action, resulting in sharp gap openings and elevated volatility, which is leading to quick intraday reversals. This is also reflected in India VIX hovering near 25, indicating continued uncertainty and wide trading swings.
From the derivatives perspective, PCR near 0.81 indicates cautious positioning. The option chain shows call writers are active around 22,900–23,000, while the Put writers are positioned near 22,500, making this an important support zone. A move above 23,000 may trigger short covering toward 23,300, whereas a break below 22,500 could resume the broader downtrend.
Overall, the rebound appears corrective within a broader weak structure, and unless Nifty reclaims 23,000–23,200, rallies are likely to face resistance, keeping a sell-on-rise bias intact amid elevated volatility.
Nifty Bank: recovery remains fragile
Nifty Bank witnessed a recovery but closed with indecision at 51,448.65, up 1,173.30 points (+2.33%), forming a Doji candle on the daily chart, indicating lack of follow-through after the sharp decline. The index attempted to extend gains but faced supply near higher levels, suggesting that the bounce is more of a pause within a broader weak structure rather than a confirmed reversal.
Technically, the index rebounded from the 50,000–50,500 support band and moved toward 51,900, where selling pressure emerged. The Doji formation near this resistance zone reflects hesitation among participants and absence of aggressive long build-up. The index continues to trade below its short-term resistance cluster, keeping the recovery fragile.
Momentum indicators have improved marginally, with RSI recovering toward 34–36, but still sustaining below the neutral zone, indicating limited upside strength. A sustained move above 52,000 could push the index toward 52,500–53,000, while failure to hold 50,600 may again drag the index toward 49,700–49,500.
On the hourly chart, the index maintained a lower-high and lower-low structure, and failed to sustain the gap-up opening, giving up a portion of early gains, indicating supply emerging on intraday pullbacks.
From the derivatives perspective, PCR near 0.85 reflects cautious positioning after the recent decline. The option chain shows call writers active around 52,000–52,500, while put writers are positioned near 50,500–50,000, indicating a broad near-term trading band.
The presence of call writing at higher levels suggests that rallies may continue to face resistance unless the index decisively reclaims 52,500.
Overall, the Doji after a sharp decline signals consolidation with negative bias, and unless the index sustains above 52,000–52,500, rebounds are likely to face selling pressure, keeping the broader tone cautious.
Technical Analysis Report
India VIX eases
Om Mehra, Technical Research Analyst, SAMCO Securities
Nifty ended the session at 22,679.40, gaining 1.56%, with the index sustaining higher levels during the session, though upside remained capped near previous resistance. The session reflects an effort to build a short-term base; however, the recovery remains restricted within the broader downtrend.
The index continues to trade below its short-term moving averages, indicating that the broader setup remains under pressure.
Momentum indicators show only a mild recovery, with RSI near 37, while MACD remains in negative territory.
The rebound faced resistance near the 23.6% Fibonacci retracement level placed around 23,240. Sustaining above this level remains a challenge, indicating that the bounce is still corrective in nature.
India VIX moderated near 25 after recent spikes but remains elevated, reflecting continued uncertainty in the market.
