Nifty Bank Sustains Above Key Resistance; Momentum Build-Up Hinges on 54,700 Breakout

Nifty Bank Market Overview

The Nifty Bank index extended its winning streak on Thursday, closing at 54,669.60, up by 133.60 points. The session began with a bullish gap-up, helping the index sustain above its immediate resistance for the first time in weeks.

Strong support continues to hold firm as several PSU and private banks reversed sharply from oversold levels, signaling the onset of fresh upside traction. On the daily chart, consistent buying on dips highlights that traders remain confident at lower levels.

The RSI has improved to 47 from oversold zones, showing signs of recovery, though a move above the neutral 50 mark will be key to confirming stronger momentum.

Technical Highlights

• Immediate Support: 54,000–54,300 (well-defended zone backed by put writers).
  
  
• Immediate Resistance: 54,700, followed by the psychological 55,000 mark.
  
  
• Trend Formation: Higher highs and higher lows on the hourly chart, signaling sustained bullish momentum.
  
  
• Outlook: As long as 54,000–54,300 holds, the buy-on-dips strategy remains valid.
  
  

A decisive breakout above 54,700 could open the doors for a rally toward 55,200.

 Derivatives Snapshot

The F&O segment reflected cautious optimism:

• The 55,000 strike saw a sharp call OI buildup of 12.25 lakh contracts, cementing it as a resistance ceiling.
  
  
• The 54,000 strike recorded the highest put OI of 14.42 lakh contracts, confirming it as a solid support base.
  
  
• PCR (Put-Call Ratio): Improved to 1.01 from 0.98, pointing to a mild bullish bias.
  
  

Fresh put writing at current levels signals limited downside conviction, while call unwinding reflects improving market sentiment.

 Market Sentiment & Outlook

The Nifty Bank index has successfully sustained above its immediate hurdle of 54,500, with improving sentiment now visible in both price action and derivatives positioning.

• Bullish Trigger: A breakout above 54,700 could trigger short covering and fuel an extended rally toward 55,200.
  
  
• Support Zone: 54,000–54,300 continues to act as a reliable cushion.
  
  
• Bias: Higher-high, higher-low formations underpin a constructive bullish undertone.
  
  

👉 Until a decisive breakout occurs, traders may continue to adopt a buy-on-dips strategy, with strict support levels in place.