Nifty Bank at critical support; upside capped until 55,600

Nifty Bank overview

Nifty Bank lost momentum and slipped toward a key inflection area after breaking its ascending trendline, extending a sequence of four sessions where closes remained below the previous day’s high. Price is spinning around 55,100–55,000, a confluence of the 0.382 Fibonacci retracement and the 20‑day EMA, making this cluster the immediate line in the sand for trend preservation. A decisive close below 55,000 risks denting the prevailing uptrend, while sustained holds above 55,100–55,000 can stabilize the structure for a rebound attempt.

Price action and momentum

Intraday, sellers again capped rebounds at elevated levels, yet the index has not delivered an authoritative close beneath 55,100–55,000, signaling buyers still defend this zone. The daily chart shows a developing lower‑highs sequence near the psychological 55,000 mark, keeping sentiment cautious until a close above the prior day’s high resets the tone. Momentum remains neutral‑to‑balanced with RSI holding above 50, indicating bears have not seized full control.

Key levels to watch

• Support cluster: 55,100–55,000 (0.382 Fib + 20‑day EMA).
• Breakdown magnets: 54,800–54,700 initially, then 54,500 on an extension.
• Immediate resistance: 55,500–55,600; upside is likely capped until 55,600 is reclaimed on a decisive close.
  
  

Derivatives snapshot

Options positioning shows call writers outpacing put writers, reflecting a cautious undertone and reinforcing overhead supply. Fresh open interest at the 55,500 call strike strengthens this ceiling, while notable put OI at 55,000 confirms it as critical support and a focal battleground. The Put‑Call Ratio sliding to 0.80 from 1.12 tilts bias toward sellers and favors range‑to‑downside trades unless price reclaims resistance.

Trading playbook

• Bullish validation: Close above 55,600 to negate the lower‑highs pressure and open 55,800–56,050.
• Range‑fade bias: While below 55,500–55,600, sell on rises into supply with tight, pre‑defined risk.
• Breakdown protocol: A decisive close below 55,000 exposes 54,800–54,700 first, with 54,500 as an extended target if momentum accelerates.
  
  

Market sentiment and outlook

The broader uptrend is in pause mode, with the broken trendline and a string of lower closes arguing for patience at support and discipline at resistance. As long as 55,000 holds, base‑building is possible; however, aggressive call writing near at‑the‑money strikes and retreating put support point to a consolidation‑to‑soft‑bearish bias. A sustained reclaim of 55,600 is required to unlock higher levels and shift control back to the bulls.