Nifty: Trend Reversal Awaits Confirmation
Dhupesh Dhameja,
Derivatives Research Analyst,
SAMCO Securities
Mumbai, 9 June 2026: Nifty witnessed a resilient rebound from the day's low and settled 119.10 points higher (+0.52%) at 23,242.10, indicating buying interest emerging near critical support levels.
Derivatives Analysis Report
Nifty: Value Buying Near Key Support Cushions
Despite the recovery, the index continues to trade below its 10-DEMA, positioned near 23,423, suggesting the broader short-term trend remains tilted in favour of the bears. However, the successful defense of the 23,150–23,100 support zone highlights the presence of value buying and reinforces this region as an important demand pocket.
On the technical front, the index is attempting to stabilize after the recent breakdown, with price action suggesting a phase of consolidation rather than a continuation of aggressive selling. The momentum indicator RSI has rebounded from lower levels and is currently placed near 40, indicating that downside momentum is gradually losing intensity. Nevertheless, a decisive move above the 10-DEMA remains essential to validate a sustainable recovery and improve the near-term market structure.
From a derivatives standpoint, positioning remains range-bound but with signs of improving sentiment. Significant put open interest accumulation at the 23,200 and 23,000 strikes continues to provide a sturdy support base, while persistent call writing at the 23,300 and 23,500 strikes is likely to restrict immediate upside. The PCR has improved to 1.05, reflecting strengthening participation from put writers and suggesting growing confidence in the support zone. Adding to the constructive undertone, India VIX declined sharply by 8.53% to 15.58, indicating easing volatility expectations and reducing immediate downside risks.
For the upcoming session, the 23,150–23,100 zone remains the market's pivotal support cluster. As long as the index sustains above this region, a relief rally toward 23,400–23,500 remains on the table. However, a decisive close above the 10-DEMA at 23,423 would be required to trigger fresh momentum-led buying. Conversely, any breach below 23,100 could invite renewed selling pressure and accelerate the decline toward the 22,900–22,800 zone.
Breakout Brewing: Nifty Bank Closes Above Previous Week's High
Nifty Bank delivered a powerful comeback, rallying 1,130.75 points (+2.09%) to close at 55,194.50. The index not only reclaimed the psychological 55,000 mark but also surpassed its previous week's high and decisively closed above the 20-DEMA (54,412), signalling a meaningful improvement in market breadth and risk appetite.
Technically, the index has reached a critical inflection point. The recent recovery has brought Nifty Bank to the neckline of a potential Double Bottom formation, a pattern often associated with trend reversals after an extended corrective phase. The decisive reclaim of the 20-DEMA, coupled with a higher-high formation, suggests that the market is transitioning from a consolidation phase toward a potential expansion phase. Momentum has strengthened considerably, with RSI rising to 55 and moving above the equilibrium zone, reflecting growing bullish participation and improving price strength.
From a derivatives perspective, the undertone has turned constructive. Significant put open interest accumulation at the 54,000 and 54,500 strikes underscores strong institutional support, while call writers remain active at 55,000 and 55,500, making this zone the immediate hurdle for further upside. The PCR has improved to 0.99, indicating a gradual shift in positioning as market participants build confidence in the recovery.
Going forward, 55,000 is expected to act as a pivotal support level. Sustaining above this zone could pave the way for a breakout above the Double Bottom neckline, opening the door for a move toward 55,500–56,000 initially. A decisive close above 56,000 would confirm the broader reversal structure and could trigger fresh momentum-led buying. Unless 55,000 is breached on the downside on a closing basis, the broader bias remains tilted in favour of the bulls.
Technical Analysis Report
Nifty stages a modest recovery, holds above lower Bollinger Band
Om Mehra, Technical Research Analyst, SAMCO Securities
Nifty ended the session at 23,242.10, up 0.52%, forming a positive candle on the daily chart after yesterday's sharp decline. The index tested the lower Bollinger Band, placed at 23,110, and bounced strongly during the intraday session. On the hourly chart, Nifty is approaching the upper boundary of the descending channel, indicating a constructive outlook for the coming session.
The RSI on the daily chart is placed near 40. The MACD has witnessed a positive crossover; however, it remains below the neutral line. India VIX cooled sharply, falling 8.53% to close at 15.57.
The 23,400–23,550 zone remains the immediate resistance band, and a sustained move above this range would be the first signal of a more meaningful recovery. On the downside, the 23,070–23,100 zone is an important support area. As long as the index holds above this zone on a closing basis, the short-term outlook remains neutral to bullish.
Nifty Bank ended the session at 55,194.50, up 2.09%, forming a strong bullish candle on the daily chart, marking its best single-day gain in several weeks. The index has closed decisively above the 20-day and 50-day SMAs. Nifty Bank is also holding above the 50% Fibonacci retracement level placed at 55,100.
The breadth within the banking pack was notably strong, with Nifty Private Bank gaining 1.64% and Nifty PSU Bank surging 3.62%, indicating broad-based participation in the rally. On the hourly chart, the index has broken out of a descending channel following a prolonged corrective phase.
The daily RSI is placed at 55, its highest level in several weeks. The MACD has witnessed a positive crossover, with the histogram turning green, further supporting the improving outlook.
The 55,600–55,700 zone will act as the immediate resistance band, and a sustained close above this range would open room for a move towards 56,000. On the downside, the 54,700–54,800 zone has now turned into a key support area. As long as the index holds above this zone, the short-term outlook remains bullish.
