Nifty Bank Needs a Break Above 59,350 to Revive Strength

Nifty Bank concluded the session at 58,932.35, slipping 0.13%, as the index remained locked in a quiet and tightly range-bound trading day. Price action stayed subdued throughout the session, with the index unable to build on its recent recovery attempts and gradually edging lower. This behaviour reflects a lack of decisive participation from both buyers and sellers, while the daily candle formation signals a soft negative bias and continued hesitation at higher levels.

From a technical perspective, the index remains compressed between key reference zones. While it is trading below the middle Bollinger Band near 59,200, it continues to defend the 50-day simple moving average around 58,700. This narrow compression highlights muted volatility, with the index neither showing signs of a meaningful breakdown nor offering clarity on a sustainable upside move at this stage.

Momentum indicators continue to echo the cautious undertone. The daily RSI is hovering near 48, remaining below the neutral mark and pointing to limited buying strength in the current structure. The Supertrend level near 58,351 remains a crucial downside reference, as a decisive breach below this level could invite incremental selling pressure. On the upside, immediate resistance is seen near 59,100, followed by 59,200, where repeated selling interest has emerged. A stronger and more critical supply zone is placed around 59,350, which has previously acted as a rejection area and remains a key hurdle for any meaningful recovery.

Derivatives Snapshot

The derivatives landscape further reinforces the guarded market tone. Call writers have added fresh positions at at-the-money and adjacent strikes, strengthening overhead resistance and capping upside attempts. In contrast, put writers have trimmed exposure and rolled positions to lower strikes, signalling expectations of a prolonged consolidation phase rather than an imminent breakout.

A significant build-up of nearly 23.75 lakh call contracts at the 59,000 strike has firmly established this level as a formidable resistance zone. On the downside, the accumulation of approximately 13.50 lakh put contracts at the 58,500 strike is providing a near-term support cushion, helping limit deeper declines. The Put-Call Ratio (PCR) remains unchanged at 0.66, underscoring the prevailing cautious sentiment and suggesting that sellers continue to hold an upper hand at higher levels.

Market Outlook

Overall, Nifty Bank remains entrenched in a muted and directionless phase, with the near-term bias marginally tilted to the downside. Unless the index reclaims and sustains above the 59,200–59,350 zone, the outlook is likely to remain range-bound, characterised by selective intraday moves rather than a decisive trend.