Nifty Bank: Resistance cluster near 53,500 in focus
Dhupesh Dhameja,
Derivatives Research Analyst,
SAMCO Securities
Mumbai, April 7, 2026: Nifty index extended its recovery for the third consecutive session and closed higher at 23,123.65, indicating continued short covering along with gradual buying interest emerging from lower levels.
Derivatives Analysis Report
Nifty recovery strengthens
The index also managed to reclaim the psychological 23,000 mark, reflecting improving near-term sentiment. On the daily chart, the index formed a strong bullish candle, marking three consecutive sessions of higher lows, suggesting a developing recovery structure after the recent decline.
Momentum indicators also support the rebound, with RSI showing a positive divergence reading near 43, indicating weakening bearish momentum. However, a follow-through move above immediate resistance is still required to confirm the sustainability of the recovery.
From the derivatives front, PCR stands near 1.25, indicating improving sentiment with short covering bias. Options data shows call writing around 23,500–24,000, capping the upside, while put writing at 22,800–23,000 suggests immediate support. Meanwhile, India VIX cooled off from recent highs and slipped below the 25 zone, indicating easing volatility after the recent spike, though volatility remains elevated and may keep intraday swings high.
Going ahead, 23,400–23,500 will act as the immediate hurdle; a sustained move above this zone may extend the recovery towards 23,800–24,000. On the downside, 23,000 remains a crucial support, while a break below 22,800 could weaken the ongoing rebound.
Nifty Bank’s recovery sustains above 52K
Nifty Bank index extended its recovery for the third consecutive session and closed marginally higher at 52,716.25, indicating gradual buying interest emerging from lower levels while sustaining above the psychological 52,000 mark. On the daily chart, the index formed a bullish candle with three consecutive higher lows, suggesting a developing pullback after the recent sharp decline. The ability to hold above 52,000 reflects improving near-term sentiment.
Momentum indicators are also stabilizing, with RSI recovering near 41 and showing early signs of positive divergence, indicating selling pressure is gradually easing. However, a decisive follow-through above nearby resistance is still required to confirm continuation of the recovery. On the hourly chart, the index is witnessing a gradual recovery with minor dips getting bought into, though supply persists near overhead resistance zones.
From the derivatives front, PCR stands near 0.85, indicating neutral positioning. Options data shows call writing around 53,000–53,500, capping the upside, while put writing at 52,000 and 51,500 suggests immediate support. Going ahead, 53,300–53,500 will act as the immediate hurdle; a sustained move above this zone may extend the recovery towards 54,000–54,500. On the downside, 52,000 remains a crucial support, while a break below 51,500 could weaken the ongoing rebound.
Technical Analysis Report
Nifty Holds Gains, Eyes Confirmation above Key Levels
Om Mehra, Technical Research Analyst, SAMCO Securities
Nifty ended the session at 23,123.65, gaining 0.68%, and marked its third consecutive positive close, indicating that the index is attempting to build a base in the 22,500–22,800 zone. The recovery has been gradual rather than impulsive, and holding gains across successive sessions suggests that selling pressure is easing.
On the daily chart, Nifty has moved back toward the 23.6% Fibonacci retracement level placed around 23,160. This level is acting as the first important test on the upside. Above this, the 38.2% retracement near 23,770 remains the next barrier. The index is also moving closer to its short-term moving averages, indicating improving near-term traction, though it remains below the broader resistance of the daily Supertrend level.
The RSI has moved up near 43 and continues to recover from lower levels. The improving advance-decline ratio also suggests that the recovery is seeing broader participation across sectors. India VIX eased to 24.69, reflecting some moderation in volatility, although the reading remains elevated enough to keep near-term swings active.
A fresh positive close in the next session would strengthen the base formation and may lead to a move toward 23,300–23,350. On the downside, the 22,800–22,500 zone remains the key support. The near-term trend has improved, but the index remains sensitive to global developments, which may keep the next session volatile.
Nifty Bank ended the session at 52,716.25, gaining 0.20%, with the index continuing to stabilise after the recent decline. The session remained relatively contained, with gains holding near the close, indicating steady absorption at lower levels. On the daily chart, the index has gradually moved back above the 23.6% Fibonacci retracement level near 52,700, which now acts as an immediate reference point. However, the recovery remains incomplete as the index continues to trade below the 38.2% retracement level near 54,400, keeping the broader corrective phase intact.
The index is currently positioned near its short-term moving average. The RSI has moved higher toward 41, suggesting improving momentum from lower levels, while the slope indicates a gradual recovery rather than a sharp reversal.
On the upside, 53,100–53,400 remains the immediate resistance band, aligning with the next Fibonacci cluster. A sustained move above this range on a closing basis would be required to improve the overall outlook.
On the downside, 52,000 remains the key support zone. The index is showing signs of stabilisation, but strength will only emerge on a sustained move above 54,400.
The ongoing recovery lacks confirmation, with strength contingent on a decisive close above 54,400.
