Dhupesh Dhameja, 

Derivatives Research Analyst, 

SAMCO Securities

Mumbai, March 25, 2026: Nifty witnessed a strong follow-through recovery and closed at 23,306.45, up 394.05 points (+1.72%), indicating continued short covering after the recent sharp decline. 

Derivatives Analysis Report

The index sustained above the psychological 23,000 mark throughout the session, reflecting improving sentiment.

Technically, the index has reclaimed its immediate resistance zone of 23,000–23,100, which now turns into an important support area. As long as the index holds above this zone, the pullback may extend toward 23,600–23,800, while failure to hold 23,000 could drag the index back toward 22,700–22,500.

Momentum indicators have improved from oversold territory, with RSI reclaiming above 40, reflecting improving sentiment after prolonged weakness. On the hourly chart, the index has moved above its short-term averages, supporting near-term strength, though the broader trend remains cautious as the index still trades below the falling 10-DEMA on the daily chart.

From a derivatives perspective, PCR near 1.25 indicates a positive undertone with aggressive put writing. Notably, put writers are building positions at 23,000, establishing it as a strong base, while call writers are active near 23,500–24,000, capping the upside. This positioning suggests a near-term range of 23,000–23,500.

Going ahead, sustained strength above 23,400–23,500 could trigger extended short covering toward 23,800–24,000, while rejection near higher levels may lead to consolidation. As long as the index holds above 23,000, a buy-on-dips strategy may remain favourable, whereas a break below it could revive selling pressure.

Nifty Bank’s Range Shifts

Nifty Bank extended its recovery and closed at 53,708.10, up 1,102.45 points (+2.10%), indicating continued short covering after the recent sharp decline. The index sustained above the 53,500 zone but is facing supply near 54,000–54,200, where the falling short-term averages and previous breakdown zone are placed.

Technically, the index has reclaimed 53,000–53,200, which now acts as an immediate support area. Holding above this region may extend the pullback toward 54,800–55,000, while failure to sustain above 53,000 could again drag the index toward 52,200–51,900.

Momentum indicators are stabilizing from oversold territory, with RSI still unable to reclaim 40, reflecting that the recovery is largely short-covering driven and broader sentiment remains cautious. On the hourly chart, the index is attempting to form higher lows, indicating gradual improvement, though the broader structure still reflects a sell-on-rise trend below key supply zones.

From a derivatives perspective, PCR near 0.86 indicates a cautious undertone. Notably, call writers are active around 54,000 and 54,500, restricting the upside, while put writers are gradually shifting toward 53,000, marking it as a make-or-break support. This positioning suggests a range-bound setup between 53,000–55,000 in the near term.

Going ahead, sustained move above 54,200 could trigger further short covering toward 54,800–55,000, while rejection near resistance may invite fresh selling pressure. Until the index reclaims 55,000, sell-on-rise strategy may continue, with volatility expected to remain elevated.

Technical Analysis Report

Nifty Edges Higher, Yet Resistance Remains Strong

Om Mehra, Technical Research Analyst, SAMCO Securities

Nifty ended the session at 23,306.45, gaining 1.72%, with the rebound holding steady throughout the session as declines remained shallow and recovery attempts sustained at higher levels.

On the daily chart, Nifty has formed a bullish candle, indicating continuation of the rebound from the recent low. The index has moved above the 23,240 zone and is now positioned near the 23.6% Fibonacci retracement level placed around 23,384. It is also hovering around the 10-day moving average, indicating an attempt to stabilise after the recent breakdown. However, the index continues to remain below the higher resistance zone near 23,700–23,900, keeping the broader trend under pressure.

The RSI has moved up to near 40, indicating improving momentum from lower levels. The CCI has also recovered from deeply negative territory, while ADX remains elevated near 40. On the hourly chart, the index is forming a sequence of higher highs and higher lows from the recent bottom, indicating short-term strength. However, the recovery is unfolding within a broader declining setup, and the move lacks follow-through beyond immediate resistance zones.

India VIX remains elevated at 24.64, indicating that volatility continues to stay high despite the recent rebound. Sustaining above 23,500 on a closing basis will be important for extending the move toward 23,650–23,800. On the downside, 23,000–22,800 remains a crucial support zone.

*Nifty Bank* ended the session at 53,708.10, gaining 2.10%, as the index witnessed a rebound for the second consecutive day from lower levels after the recent steep decline.

On the daily chart, the index has formed a bullish candle, rebounding from the lower levels. The recovery has brought the index back near the 23.6% Fibonacci retracement level, placed around 53,760. However, the index continues to trade below its short-term moving averages, keeping the broader setup under pressure.

The RSI has moved higher toward 38, indicating a recovery from oversold levels. The CCI has also shown improvement from deeply negative territory, while ADX remains elevated near 39, suggesting that the strength of the prior downtrend is still intact.

The 54,200–54,500 zone is expected to act as an immediate resistance area. Unless the index sustains above this range on a closing basis, the recovery may remain limited. On the downside, 53,200–53,000 remains a key support zone, and a break below this range may bring back pressure. The ongoing move reflects a short-term pullback within a broader corrective phase.