RBI Reforms Trigger Strong Rebound; Nifty Bank Reclaims 55,000 Support

The Nifty Bank index opened the October series on a powerful note, snapping its prolonged losing streak with a sharp rally. Backed by the RBI’s sweeping reform package, the benchmark surged higher as heavy short-covering from institutional players combined with broader market participation.

Nifty Bank closed Wednesday’s session at 55,347.95, up 712.10 points, decisively reclaiming the 55,000 mark and flipping it into a crucial support zone.

Technical Overview: Bulls Back in Control

After eight consecutive sessions of decline, Bank Nifty finally staged a strong reversal:

• Support Zone: Fresh support is now anchored at 55,000–54,800, making it a key “buy-on-dips” area.
  
  
• Resistance Zone: Immediate hurdles are placed at 55,800–56,000, where sellers are likely to defend positions.
  
  
• Moving Averages: The index reclaimed its 20-, 50-, and 100-day EMAs, strengthening the short- to medium-term bullish structure.
  
  
• Momentum Indicators: The RSI rebounded above 50, signaling renewed buying pressure and a shift in market sentiment.
  
  

Notably, the index also closed above the highs of the last three sessions—a clear sign of strength and growing optimism among traders.

Derivatives Snapshot: Optimism Builds

The derivatives setup mirrors the bullish tone:

• Put Writing: Heavy addition of 13.94 lakh contracts at the 55,000 strike reinforced strong support.
  
  
• Call Writing: A notable build-up of 10.12 lakh contracts at the 56,000 strike signals stiff resistance at higher levels.
  
  
• PCR: The Put-Call Ratio (PCR) jumped to 1.10 from 0.77, reflecting a decisive shift toward bullish sentiment.
  
  

The migration of call positions to higher strikes, coupled with strong put additions at near-the-money levels, suggests limited downside risk.

Market Sentiment & Outlook

With the RBI’s reforms acting as a key catalyst, Bank Nifty has regained momentum and broken away from its prolonged losing streak. The 55,000 zone is now a strong base, and unless the index slips below this support, buyers are expected to remain in control.

• Sustained trade above 55,500 will be critical for further upside.
  
  
• A decisive breakout could open the door for a test of 56,000.
  
  
• On the downside, 54,800 remains a reliable support level, keeping risks well-contained.
  
  

Overall, the near-term outlook for the Bank Nifty has turned sideways to bullish, with the balance of power shifting back toward buyers.