Nifty Bank once again struggled to sustain higher levels, facing consistent resistance on every upward attempt and witnessing swift selling pressure during intraday recoveries. The index continues to display a subdued and indecisive tone, oscillating within its familiar trading range and remaining below the 20-day exponential moving average (DEMA)—a sign that bullish momentum is steadily weakening.
Although the benchmark recovered to the 59,000 level, it has yet to show any significant follow-through buying, highlighting the lack of firm conviction among market participants.
Muted Close Reflects Weakening Upside Strength
On Friday, Nifty Bank closed almost flat, rising just 156.35 points to end the session at 59,069.20. Despite the marginal uptick, price action reflects waning upside strength, with intraday rebounds repeatedly attracting selling or being used to initiate fresh short positions.
Unless the index breaks out above the critical 59,500–59,700 swing-high zone, any rallies are likely to be interpreted as technical pullbacks rather than the start of a meaningful trend reversal.
Technical View: Consolidation Continues Within Defined Range
Nifty Bank remains stuck in a consolidation phase, trading within a broader corridor of:
- Upside Resistance: 59,700
- Downside Support: 58,600
The persistent lower-high structure underscores the weakness in trend strength, keeping 59,700 as the key inflexion point for potential upside momentum.
Momentum indicators also signal indecision. The Relative Strength Index (RSI) hovering near the 50 mark reflects a lack of directional clarity and supports the view of time-wise consolidation rather than an imminent sharp correction.
Derivatives Snapshot: Caution Dominates F&O Positioning
The derivatives setup indicates a rising tone of caution across the market.
Call Writers Strengthen Overhead Supply
Fresh call writing at at-the-money and nearby strikes indicates strong resistance. Nearly 18.58 lakh call contracts at the 59,500 strike mark this level as a major supply zone.
Put Writers Turn Defensive
Put writers have reduced exposure and shifted to lower strikes, signalling the expectation of a prolonged consolidation rather than a breakout.
Nearly 14 lakh put contracts at the 59,000 strike provide firm downside support.
The Put-Call Ratio (PCR) has edged up slightly from 0.70 to 0.73, reflecting cautious positioning and suggesting that sellers still retain control at higher levels.
Market Outlook: Range-Bound and Fragile Structure Persists
Nifty Bank continues to face selling pressure on every rebound, keeping the near-term structure weak. The 59,500–59,700 zone remains heavily defended by sellers, while the 58,700–58,600 band has emerged as a crucial demand zone to maintain short-term stability.
Key Levels to Watch
- Immediate Resistance: 59,500–59,700
- Immediate Support: 58,700–58,600
- Major Support: 58,000
- Potential Upside Target (if breakout occurs): 60,100
Possible Scenarios
Bullish Case
A sustained move above 59,700 could trigger a shift in momentum and pave the way toward 60,100.
Bearish Case
A break below 58,600 may trigger fresh selling pressure, dragging the index toward 58,000, thereby extending the ongoing consolidation.
Easy & quick
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