Nifty Bank Logs Second Weekly Gain; Momentum Holds Firm Above 54,500

Weekly Performance Overview

The Nifty Bank index posted its second consecutive week of gains, extending its winning streak for the eighth straight session. This consistent uptrend confirmed a sustained breakout above the 54,500 mark, which had earlier acted as a strong resistance zone.

The steady formation of higher lows indicates the absence of persistent selling pressure, further strengthening the bullish undertone.

On Friday, Nifty Bank gained 139.70 points to close at 54,809.30, with a clear follow-through move above the 54,500 breakout zone, establishing it as a strong base support.

 Technical Analysis

• Daily Chart: The index is now trading near a crucial resistance aligned with its 50-DEMA, which could trigger minor pauses or short-term profit booking. However, such pullbacks may provide re-entry opportunities at lower levels.
  
  
• RSI: Inched closer to the neutral 50 mark after nearly two months, signaling gradually improving momentum.
  
  
• Support & Resistance:
  
  
  • Support: 54,300–54,500
    
    
  • Resistance: 55,000 and 55,150
    
    
  • Breakout Trigger: A close above 55,150 may open the rally toward 55,500
    
    

 As long as the 54,500 cluster holds, the broader trend favors a buy-on-dips strategy.

 Derivatives Snapshot

• Put Writers: Retained an edge with fresh additions, confirming confidence at support levels.
  
  
• Call Writers: Partial unwinding reflects improving sentiment.
  
  
• OI Data:
  
  
  • 55,000 strike: Strong resistance with 13.17 lakh contracts
    
    
  • 54,000 strike: Solid support with 13.95 lakh contracts
    
    
• PCR (Put-Call Ratio): Moved up to 1.02 from 1.01, indicating a mild bullish bias.
  
  

Fresh put writing near current levels reinforces the limited downside risk, while unwinding of call positions hints at growing optimism.

Market Sentiment & Outlook

The Nifty Bank index is showing constructive price action, supported by:

• Back-to-back positive weekly closes
  
  
• A base breakout above 54,500
  
  
• Strong rebounds in both private and PSU banks
  
  

While the 55,000 mark may act as near-term resistance, it is also a potential springboard for stronger rallies. A sustained close above 55,150 could spark short covering, paving the way toward 55,500.

Until then, dips remain buying opportunities, as the 54,300–54,500 band continues to serve as a solid cushion.