NIFTY Bank Compresses Near Highs; Expansion Likely Above 61,700

Market Overview: Tight Consolidation Near Highs

Nifty Bank closed at 61,264.25 (+0.15%), forming a small-bodied candle that reflects controlled consolidation. The index continues to hold firmly above the 61,000 mark, indicating sustained buying interest at lower levels.

Rather than retracing, price action is compressing near recent highs, which typically precedes expansion when supported by momentum.

Technical Structure: Bullish Bias Intact

• Above Key Moving Averages (Daily Chart): Broader uptrend remains intact.
• Upper Donchian Boundary Compression: Signals strength near breakout territory.
• Hourly Chart: Tight clustering after move toward 61,300 shows short-term balance.
• Crucial Support Zone: 60,800–60,900 to maintain positive bias.
• MACD: Positive with expanding gap.
• RSI near 59: Indicates steady upside momentum.

The structure favors continuation as long as supports remain protected.

Derivatives View: Defined Trading Range

Options data reflects a capped but constructive setup:

• 61,500 Call OI: 10.44 lakh contracts — immediate upside cap.
• 61,000 Put OI: 12.68 lakh contracts — strong support base.
• PCR at 0.91: Neutral sentiment with slight caution.

Heavy call writing near 61,500 suggests resistance unless short covering is triggered on a breakout.

Key Levels to Watch

Outlook

The index appears range-bound between 61,000 and 61,500 in the immediate term.

• Above 61,600–61,700: Likely to trigger short covering and momentum expansion.
• Below 61,000: Could weaken near-term structure and shift bias to corrective mode.

Overall, the setup suggests compression before expansion, with bulls retaining control unless key support levels are breached.