Nifty Bank Defends 54,000, Eyes Breakout Above 54,700

Nifty Bank extended its winning streak on Wednesday, closing at 54,536.00 with a gain of 319.90 points. The session opened with a bullish gap-up, allowing the index to sustain above its immediate resistance for the first time in several sessions. Importantly, the index continued to defend the 54,000 zone, which has repeatedly acted as a reliable cushion backed by strong derivatives positioning.

The daily chart printed an indecisive Doji candlestick, indicating that a move beyond either today’s high or low will dictate the near-term trajectory. On the hourly chart, a higher-high, higher-low formation is visible, signaling that upward momentum is gradually being reinforced.

Meanwhile, momentum indicators are also showing early signs of recovery. The RSI has improved to 45, rising from oversold territory, though a decisive cross above the neutral 50 mark is still awaited to confirm stronger bullish traction.

Technical View: Nifty Bank

• Support zone: 54,000–53,900 (well-guarded by strong put writers).
  
  
• Resistance levels: 54,700 as immediate hurdle, followed by 55,000.
  
  
• Trend structure: Higher-high, higher-low on intraday charts points to improving momentum.
  
  

As long as 54,000 holds firm, a buy-on-dips strategy is expected to remain effective.

Derivatives Snapshot

• Resistance ceiling: The 55,000 strike saw notable call OI build-up of 13.02 lakh contracts, cementing it as a strong barrier.
  
  
• Support base: The 54,000 strike attracted the highest put OI at 14.74 lakh contracts, reaffirming it as a crucial floor.
  
  
• Market positioning: Fresh put writing at current levels suggests limited conviction for deeper downside, while call writers are gradually unwinding positions.
  
  
• PCR update: The Put-Call Ratio (PCR) improved to 0.98 from 0.92, signaling a mild bullish tilt and scope for sustained upside momentum.
  
  

Market Sentiment & Outlook

Broadly, Nifty Bank is hovering just above its breakout neckline of 54,500, but a sustained close above 54,700 will be required to confirm a breakout. A move beyond this level could unleash short covering, paving the way for an extended rally toward 55,200.

On the flip side, the 54,000–53,900 zone remains the make-or-break support, and as long as it holds, the market undertone stays constructive. With several PSU and private banks showing sharp reversals from oversold territory, sentiment is turning more positive.

Trading view: Until a decisive breakout above 54,700, range-bound volatility is likely. Buy-on-dips remains the preferred strategy, supported by the strong base near 54,000.