Market Recap
The Nifty Bank index delivered steady follow-through buying after breaking out of its recent consolidation range, even as it traded close to a near-term resistance zone. By reclaiming the 10-day exponential moving average (EMA), the index signalled a revival in bullish momentum and confirmed the strength of the recent breakout.
A strong and well-defined base has now formed in the 59,300–59,000 zone, closely aligned with key short-term moving averages. This area has clearly emerged as the bulls’ last line of defence, with consistent buying interest reinforcing the durability of the base and improving the prospects of the ongoing upswing.
From a structural perspective, price action continues to favour continuation. The index has maintained a series of higher lows and has closed above the previous session’s high for the third consecutive trading day, reflecting strengthening bullish participation. A sustained move above the immediate hurdle at 60,100 could intensify short covering and invite incremental buying, while holding above the 59,200–59,000 support band remains critical to convert the rebound into a more decisive bullish phase.
Thursday’s session carried a distinctly positive bias, with intraday declines witnessing swift buying interest near the support zone. The evolving base structure and continuation signals suggest that bulls are gradually asserting control. The index ended the session higher by 359.05 points at 59,957.85, reinforcing the buy-on-dips strategy.
Technical View
Technically, Nifty Bank continues to display signs of bullish continuation, validating its breakout from the consolidation box—an encouraging signal for trend followers. After rebounding firmly from support, a sustained push beyond 60,100 could add fresh momentum to the rally.
However, the 60,100–60,300 band remains a key supply zone, having acted as a stiff resistance in the past and likely to test the strength of the ongoing move. Despite this, the index is trading comfortably above its 10-day and 20-day EMAs, indicating that downside risks remain limited in the near term.
Momentum indicators also support the positive bias:
- RSI remains above 55, signalling easing selling pressure and weakening bearish dominance
- Price action continues to favour higher levels on declines
Any meaningful pullbacks toward the 59,300–59,000 region are likely to be viewed as accumulation opportunities, while a decisive breakout above 60,100 could trigger an acceleration in buying interest.
Derivatives Snapshot
Derivatives data reflects an improving and optimistic undertone. Put writers have added aggressive positions at at-the-money and nearby strikes, effectively cushioning near-term downside risk. At the same time, call writers appear to be rolling positions to higher strikes, suggesting expectations of a range-bound market with a positive bias.
Key derivatives highlights:
- 60,000 Call OI: ~16.51 lakh contracts, marking it as a key resistance zone
- 59,500 Put OI: ~5.89 lakh contracts, reinforcing it as immediate support
- Put–Call Ratio (PCR): Improved to 1.19 from 1.09, indicating sustained optimism and dominance of put writing
Market Outlook
Nifty Bank is exhibiting clear signs of trend continuation following its breakout from the consolidation phase. The index has reclaimed key short-term averages and established a firm base in the 59,000–59,300 zone. Importantly, repeated closes above the previous session’s high over the last three trading days highlight a steady revival in buying interest.
A sustained follow-through above 60,100 could open the door for a sharper short-covering rally. On the downside, any dips toward the 59,300–59,000 region are expected to attract buying interest and provide strong support.
As long as these levels remain intact, buy-on-dips strategies are likely to stay in favour. Traders are advised to remain selective, disciplined, and cautious while navigating the evolving market setup.
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