Range-bound structure in Nifty Bank
Dhupesh Dhameja,
Derivatives Research Analyst,
SAMCO Securities
Nifty index continued to witness profit booking, marking two consecutive sessions of decline, and closed at 24,173.05 (-0.84%), reflecting weakness near higher levels as it failed to sustain above the 0.50 Fibonacci retracement zone (24,260–24,300). Despite the decline, the index is still hovering around this crucial support band, indicating that the near-term structure remains intact, although momentum has clearly softened.
Technically, 24,260–24,300 continues to act as a key pivot; sustaining above this zone may trigger a recovery, while a decisive break below 24,100–24,050 could accelerate downside momentum, opening the path towards the 0.382 Fibonacci support near 23,770–23,750. On the upside, 24,500–24,600 remains a strong resistance zone where selling pressure persists.
From a derivatives perspective, PCR stands near 0.85, suggesting a slightly cautious undertone. Option data indicates call writing concentrated around 24,400–24,600, capping the upside, while put writing near 24,000–23,800 continues to provide immediate support, reinforcing a defined trading range.
Meanwhile, India VIX has edged higher towards the 18–19 zone, indicating a mild rise in volatility and cautious sentiment at elevated levels.
Overall, the index is entering a consolidation phase with a slight negative bias, and unless it reclaims 24,350 decisively, downside risk remains elevated, while holding above key supports may still keep a selective buy-on-dips approach viable.
Nifty Bank: Support holds but upside remains capped
Nifty Bank index witnessed sharp profit booking, closing at 56,305.00 (-1.43%), as selling pressure intensified near higher levels following the recent recovery. The index faced rejection around the 0.618 Fibonacci zone (~57,200), indicating lack of follow-through strength at elevated levels. Despite the decline, the index continues to hold above the 0.50 Fibonacci retracement level (55,800), suggesting that the broader structure remains intact, though near-term sentiment has turned cautious.
Technically, 55,800 now acts as a crucial pivot; sustaining above this level could lead to consolidation with a cautious bias, while a break below may drag the index towards the 0.382 Fibonacci support near 54,400–54,200. On the upside, 57,000–57,200 remains an immediate resistance zone, followed by a stronger hurdle near 57,800–58,000.
From a derivatives perspective, PCR stands near 0.89, indicating a slightly cautious undertone. Option data suggests call writing clustered around 56,500–57,000, capping the upside, while put writing near 56,000–56,500 is providing immediate support, reinforcing a defined trading range.
Overall, the index is consolidating within a range after a sharp recovery, and as long as it sustains within the key support and resistance levels, a range trading strategy remains favorable, while a decisive move above 57,200 is required to revive strong bullish momentum.
Technical Analysis Report
Nifty, Nifty Bank Stall at Critical Levels, Drift Lower into Close
Om Mehra, Technical Research Analyst, SAMCO Securities
Nifty ended the session at 24,173.05, declining 0.84%, as the index continued to face pressure near the 50-Day SMA and failed to sustain higher levels.
Nifty formed a relatively broader red candle, indicating that every rise is being sold into, with resistance emerging in the 24,300–24,400 zone.
The broader trend remains bullish; however, the current move reflects a pause rather than continuation.
On the hourly chart, the structure shows a clear loss of momentum after forming a short-term top near 24,600.
The RSI is placed near 53, indicating that momentum has cooled from recent highs.
On the upside, 24,300–24,400 remains the immediate resistance zone, aligned with the 50-Day SMA. On the downside, 24,100–23,900 remains the immediate support range.
Nifty Bank settled at 56,305.00, down 1.43%, as the index faced a decisive rejection near the 50-Day SMA, with selling intensifying at higher levels and leading to a sharp unwind into the close.
On the daily chart, the index has formed an evening star pattern, indicating a potential short-term reversal after the recent up move.
The hourly chart is skewed to the downside; however, the primary trend remains strong.
The RSI is placed near 53, indicating easing momentum, while the DMI structure shows +DI losing ground to –DI, suggesting a moderation in directional strength.
Nifty Private Bank (-1.31%) and Nifty PSU Bank (-2.19%) both closed lower, indicating broad-based weakness across the banking space.
On the upside, 56,800–57,000 remains the immediate resistance zone. On the downside, 55,800–55,300 becomes the immediate support band.
Nifty Bank has faced a clear rejection near a key moving average, with the reversal pattern indicating near-term weakness.
