Nifty Bank Trades Range-Bound; Breakout Above 58,250 Needed for Fresh Upmove

Market Overview

The Nifty Bank index ended the session marginally higher at 57,937.55, up 0.10%, displaying notable steadiness throughout the day, the open and low matched, reflecting sustained buying interest near immediate support and reinforcing short-term stability.

Currently, the index is trading within a flag formation, indicating a consolidation phase following a recent rebound from lower levels. This pattern suggests a pause in the ongoing trend, awaiting a breakout confirmation for further directional clarity.

Technical View

Support from Short-Term Averages

From a technical standpoint, Nifty Bank is holding above its 9-day EMA, placed around 57,800, which continues to act as a short-term support zone. This stability indicates that buyers are still active on dips, maintaining a constructive undertone in the index structure.

The RSI (14), currently near 60, shows a mild uptick from recent declines, reflecting a gradual recovery in momentum. However, the MACD remains below its signal line, signalling a cautious sentiment among traders despite ongoing base formation.

Derivatives Snapshot

Options data underscores a range-bound outlook for the index:

• 58,000 Call Strike: Highest open interest buildup of 15.95 lakh contracts, establishing a strong resistance level.
  
  
• 57,000 Put Strike: Notable open interest of 12.93 lakh contracts, confirming solid support at lower levels.
  
  
• Put–Call Ratio (PCR): Remains stable at 0.91, suggesting neutral sentiment and limited directional conviction among market participants.
  
  

This positioning indicates that traders are awaiting a breakout on either side of the range before committing to aggressive positions.

Market Outlook

The Nifty Bank index appears to be in a sideways consolidation phase, oscillating between 57,500 and 58,300.

• Support Levels: 57,600–57,500
  
  
• Resistance Levels: 58,100–58,300
  
  

As long as the index holds above 57,600, the flag pattern consolidation is expected to continue. However, a decisive breakout above 58,250 would likely trigger a fresh upmove, opening the path toward 58,500–58,700 in the near term.

Until such a breakout materialises, traders should maintain a neutral to cautiously bullish stance, focusing on buying near supports and booking profits near resistance levels.