Nifty Bank Breaks Past 55,000, Charts Higher-High Structure

Market Overview

The Nifty Bank index delivered a decisive breakout above the 55,000 mark on Tuesday, extending its winning streak to ten straight sessions. The index not only sustained above this psychological barrier but also reinforced its bullish undertone with a consistent higher-high, higher-low formation over the past two weeks.

The day’s trade carried a strong positive bias, with the index decisively breaching its prior resistance zone, which now transitions into dependable support. On the daily chart, a bullish marubozu candlestick confirmed the breakout, highlighting the ongoing structural shift where resistances continue to weaken and turn into supports.

Any corrective pullbacks are expected to provide fresh accumulation opportunities, as momentum indicators remain constructive. Notably, the RSI held above the neutral 50 level, signaling steady improvement in underlying strength.

 Technical Snapshot

• Closing Level: 55,147.60 (+259.75 points)
  
  
• Candlestick Pattern: Bullish marubozu breakout
  
  
• Support Zone: 54,800–54,700 (strong demand base)
  
  
• Resistance Levels: 55,200 and 55,250 (immediate hurdles)
  
  
• Broader Floor: 54,500 remains a reliable support
  
  
• Outlook: As long as 54,500–54,700 holds, a buy-on-dips strategy is favored.
  
  

 Derivatives Insights

• Put Writers: Retain an edge with fresh additions near current levels.
  
  
• Open Interest (OI):
  
  
  • 56,000 strike: Significant call OI buildup of 13.87 lakh contracts → Strong resistance ceiling
    
    
  • 55,000 strike: Highest put OI at 13.81 lakh contracts → Dependable support zone
    
    
• PCR (Put-Call Ratio): Rose to 1.08 from 1.00, signaling a mildly bullish undertone.
  
  

Fresh put writing shows confidence in the downside being protected, while call unwinding at lower strikes suggests improving sentiment and scope for sustained momentum.

Market Sentiment & Outlook

The Nifty Bank index has firmly crossed the crucial 55,000 resistance while maintaining a strong higher-high, higher-low formation for two consecutive weeks. Importantly, call writing has shifted to higher out-of-the-money strikes, while consistent put additions near the money point toward continued bullish traction.

• Accumulation Zone: Dips toward 54,700–54,500 likely to attract buyers.
  
  
• Upside Potential: A sustained move above 55,250 could unlock upside toward 55,500.
  
  
• Broader Trend: Constructive as long as the 54,000 base remains intact.
  
  

 Until then, a buy-on-dips strategy remains the most favorable approach, supported by robust market structure and derivative positioning.