NIFTY Bank Faces Heavy Distribution Near ATH; Bears Tighten Grip

Market Recap: Sharp Reversal From Highs

Nifty Bank erased gains from the previous two sessions, plunging 811.25 points to close at 60,739.55. The decline reflects heavy distribution near the all-time high (ATH) zone, signaling that institutional supply is outweighing demand at elevated levels.

The breach below 61,000 marks a decisive short-term breakdown.

Technical Breakdown: Double-Top in Play

• Below 61,000: Confirms a developing double-top structure.
• Immediate Support: 60,600–60,500 (aligned with 10-day EMA).
• Next Support: 60,000 (psychological and structural level).
• Immediate Resistance: 61,200 — prior ATH supply zone.
• RSI: Hovering slightly above 50; momentum vulnerable to breakdown.

A sustained move below 60,500 could accelerate bearish momentum and trigger long unwinding.

Options Data Signals Caution

Derivatives positioning suggests traders are preparing for limited upside:

• 61,000 Call OI: 11.48 lakh contracts — strong resistance zone.
• 60,500 Put OI: 9.64 lakh contracts — near-term support.
• Put–Call Ratio (PCR): 0.88 — mildly bearish undertone.

Aggressive call writing near at-the-money strikes reinforces the view that rallies may face selling pressure.

Key Levels to Watch

Strategy & Outlook

The preferred tactical approach remains “Sell on Rise.”

• Any bounce toward 61,000–61,200 is likely to encounter supply.
• A sustained break below 60,500 may trigger accelerated long unwinding toward 60,000.
• Only a decisive close above 61,200 would invalidate the short-term negative setup.

With heavy distribution near highs and weakening structure, the broader bias remains cautious unless key resistance levels are reclaimed.