Bank Nifty Struggles to Conquer 55,000; Bullish Structure Intact Above 54,500

The Bank Nifty index continues to grapple with the psychological 55,000 mark, unable to sustain above it despite extending its winning streak to a ninth straight session. Importantly, the index has been firmly defending the 54,500 zone, which previously acted as a supply point and now serves as a strong base. The consistent pattern of higher lows underscores the absence of persistent selling pressure.

On Monday, the index touched an intraday high of 55,000 but faced sharp rejection, eventually forming a doji candlestick on the daily chart—indicating indecision at higher levels. With the index hovering near its 50-DEMA resistance cluster, minor pauses or profit-booking cannot be ruled out. However, such dips may provide fresh re-entry opportunities. Meanwhile, the RSI has climbed above the neutral 50 mark for the first time in nearly two months, hinting at improving momentum.

The index closed 78.55 points higher at 54,887.85. With resistance levels consistently flipping into support, the 54,300–54,500 band now stands as a dependable demand zone. On the upside, immediate hurdles are placed at 55,000 and 55,150, while the downside remains well-guarded by the 54,500 base. As long as this cluster holds, a buy-on-dips approach remains favorable.

Derivatives Snapshot

• The 55,000 strike witnessed a significant OI build-up of 13.93 lakh contracts, reaffirming it as a strong resistance ceiling.
  
  
• The 54,000 strike recorded the highest put OI at 13.51 lakh contracts, cementing it as a reliable support base.
  
  
• Fresh put writing near current levels indicates limited conviction for deeper downside, while unwinding of call positions reflects improving confidence.
  
  
• The Put-Call Ratio (PCR) eased slightly to 1.00 from 1.02, suggesting a mild bullish bias though a clear breakout is awaited.
  
  

Market Sentiment & Outlook

Bank Nifty is facing stiff resistance at the 55,000 round number, where heavy call writing continues to cap upside potential. However, strength across both PSU and private banks, coupled with active put writing at 54,500, reinforces the bullish undertone.

The broader structure remains constructive, with higher support levels shifting upward and the ongoing formation of higher highs and higher lows signaling continuation of the uptrend. That said, the 55,000–55,150 zone alongside the 50-DEMA is likely to act as near-term resistance, possibly triggering sideways consolidation or mild profit-taking.

A decisive close above 55,150 could spark short covering and open the path toward 55,500. Until then, dips are expected to attract buying interest as long as the index sustains above its key base at 54,500.