Bank Nifty Ends Week Cautiously; 56,150 Swing High Remains Unchallenged

The Bank Nifty wrapped up the week on a volatile, negative note, breaking below the past two weeks' highs and closing with a bearish candlestick. On Friday, the index fell sharply by 606.05 points to settle at 55,149.40, rejecting the psychological 56,000 mark and trapping late buyers.

Key Technical Levels

• Support: 55,000 (100-DEMA + prior swing low)
  
  
• Resistance: 55,500–55,600 (20-DEMA + 50-DEMA cluster), 56,150 (swing high)
  
  
• Bias: Sideways-to-weak below 56,150
  
  
• Range Watch: 55,000–56,100 → choppy sessions likely within this band
  
  
• RSI: Hovering just above 40 → sideways-to-weak momentum
  
  

Derivatives Snapshot

• 56,000 CE: Heavy call writing (26.42 lakh OI) → strong overhead supply.
  
  
• 55,000 PE: Highest put OI (11.42 lakh) → near-term support, but unwinding noted.
  
  
• PCR: Dropped to 0.52 (from 0.70) → call-side dominance, limited conviction for breakout.
  
  
• Note: Oversold PCR levels may allow a short-covering relief bounce.
  
  

Market Sentiment & Outlook

Bank Nifty remains under pressure with upside capped near 56,150. The sharp buildup of call OI and unwinding of puts highlight a fragile near-term structure. Holding above 55,000 is critical—any breakdown could accelerate downside momentum. Only a decisive reclaim above 56,150 would neutralize the weak bias. Until then, the index favors a “sell on rise” approach, with 55,000 serving as the key trigger zone for the next leg.