Nifty Bank Continues to Oscillate in a Range as Momentum Remains Muted

The Nifty Bank index continues to struggle for meaningful upside traction, facing consistent supply pressure at higher levels and witnessing swift profit-taking even on modest intraday recoveries. The overall sentiment remains cautious, with the index largely oscillating within a well-defined trading range. While Nifty Bank continues to trade above its 20-day exponential moving average (DEMA) signalling that the downside is still being defended the absence of sustained follow-through buying highlights prevailing indecision among market participants.

Despite holding above the psychologically important 59,000 level, the index has yet to display any convincing signs of bullish continuation.

Nifty Bank Price Action and Key Levels

On Wednesday, Nifty Bank closed marginally lower, slipping 15.95 points to end at 59,183.60. Although the decline was negligible, intraday price action suggests that dips are being gradually absorbed, with selective buying emerging at lower levels. However, unless the index manages a decisive breakout above the 59,500–59,700 resistance zone, any upside move is likely to be viewed as a technical pullback rather than the start of a fresh uptrend.

A sustained close above this overhead supply zone will be essential to revive bullish momentum and improve sentiment.

Technical Outlook: Consolidation Persists

From a technical standpoint, Nifty Bank remains entrenched in a consolidation phase, with the broader trading range capped between 59,600 on the upside and 58,600 on the downside. The persistence of a lower-high structure keeps 59,500 positioned as a critical inflection point for any meaningful shift in trend.

Momentum indicators continue to reflect this sideways bias. The Relative Strength Index (RSI) is hovering near the neutral 50 level, indicating a lack of directional strength and favouring time-wise consolidation rather than a sharp price move. This suggests that the index may continue to digest recent gains before attempting a decisive directional breakout.

Derivatives Snapshot: Cautious Positioning

The derivatives setup points to a guarded market stance. Call writers have added fresh positions at at-the-money and nearby strikes, reinforcing a strong overhead supply and limiting upside attempts. Meanwhile, put writers have reduced exposure and shifted positions to lower strikes, signalling expectations of prolonged range-bound activity rather than an immediate breakout.

• Call OI: Nearly 25.31 lakh contracts at the 59,500 strike, establishing it as a formidable resistance
• Put OI: Around 13.87 lakh contracts at the 59,000 strike, providing near-term downside support
• Put-Call Ratio (PCR): Eased to 0.70 from 0.77, highlighting cautious sentiment and indicating that sellers continue to dominate at higher levels

This positioning reinforces the view that market participants are preparing for continued consolidation.

Market Outlook: Range-Bound Bias Intact

Nifty Bank continues to face selling pressure on every recovery, keeping the near-term structure fragile. The broader setup remains vulnerable amid prolonged consolidation, with sellers firmly defending the 59,500–59,700 resistance band. On the downside, the 58,700–58,800 zone has emerged as a critical demand area and will be instrumental in maintaining short-term stability.

The heavy concentration of call writing near at-the-money strikes, along with the gradual migration of put positions to lower levels, reinforces the prevailing sideways-to-negative bias.

• Upside Trigger: Sustained close above 59,500 could reignite bullish momentum and open the path toward the 60,100 zone
• Downside Risk: A breakdown below 58,800 may weaken the structure and drag the index toward 58,500, thereby extending the consolidation phase

Until a decisive breakout or breakdown emerges, Nifty Bank is likely to remain range-bound, with traders adopting a cautious, level-driven approach.