Dhupesh Dhameja, 

Derivatives Research Analyst, 

SAMCO Securities

Mumbai, 4 May 2026: The Nifty index witnessed a mild recovery and closed at 24,119.30 (+0.51%), but the broader structure continues to reflect a range-bound bias with supply active at higher levels. 

Derivatives Analysis Report

Range-bound Nifty faces supply at higher levels

On the daily chart, the index is hovering near the 0.50 Fibonacci zone (24,200–24,250), aligned with the 50-DEMA, making this a critical resistance cluster where repeated rejections signals a lack of strong follow-through buying.

On the downside, 0.382 Fibonacci support (23,770–23,750) remains firmly intact, indicating sustained demand and preventing deeper correction. The price structure continues to oscillate within a well-defined range, with neither bulls nor bears gaining clear dominance.

Momentum remains muted, with RSI around 52, reflecting a neutral setup and absence of directional strength.

From a derivatives standpoint, PCR near 0.61 suggests a cautious-to-bearish undertone, while aggressive call writing at 24,200–24,300 continues to cap upside, and the Put base at 24,000–23,800 reinforces support. Meanwhile, India VIX sustaining near 18 indicates a controlled volatility environment, supporting range-bound price action rather than trending moves.

Structurally, until the index decisively breaks above the 24,300 resistance zone, rallies are likely to face selling pressure, making a sell-on-rise strategy more favorable. A breakout on either side of the range will be crucial to trigger the next directional move.

Nifty Bank: lower highs signal fragile structure

Nifty Bank index traded largely sideways with a slight negative undertone, as early gains fizzled out and the index closed marginally positive, reflecting a lack of follow-through buying. On the daily chart, the index is hovering near the crucial 0.382 Fibonacci zone (54,400–54,200), acting as a make-or-break support, where buyers are attempting to defend lower levels. However, the index continues to struggle to reclaim the 0.50 Fibonacci zone (55,800), which aligns with the prior consolidation breakdown area, indicating persistent supply on rallies. The index is also trading below its 20-DEMA, reinforcing a weak short-term structure with lower high formation intact.

Momentum remains subdued with RSI near 45, highlighting weak participation and absence of strong bullish momentum.

From a derivatives perspective, PCR remains around neutral-to-cautious levels, while call writing is concentrated around 55,000–55,500, capping upside, and put support near 54,000–54,500 continues to provide a base.

Structurally, unless the index decisively reclaims the 55,800 zone, rallies are likely to face selling pressure, keeping a sell-on-rise strategy favorable in the near term.