Bank Nifty in a Holding Pattern: 57,350 Breakout Needed to Reignite Bullish Sentiment

Bank Nifty slipped into a listless session on Thursday, trading within a narrow consolidation range as participants remained hesitant to take directional bets. Despite a mild late-session recovery, the index couldn’t sustain momentum and ended the day on a flat-to-negative note, closing 144.40 points lower at 57,066.05. The muted tone reflects a broader market phase of indecision, with both buyers and sellers reluctant to make aggressive moves.

 Technical Setup: Range-Bound With a Bearish Bias

On the charts, Bank Nifty remains boxed between 56,600 and 57,350, a zone it has struggled to break out of in recent sessions. Resistance around the 57,300–57,400 band continues to act as a ceiling, while support near 56,600, along with the 20-day EMA at 56,800, has provided a reliable cushion so far.

For bulls, a decisive breakout above 57,350 is the key to regaining control and setting the stage for a potential trend reversal. Until then, the prevailing tone remains neutral-to-cautious, with upside attempts quickly fizzling out amid lack of follow-through buying.

 Derivatives Action: Option Writers Dictate the Range

In the F&O space, option writers have built heavy positions at key resistance and support strikes, suggesting a tug-of-war playing out in real time. The 57,300 Call strike continues to see aggressive writing, establishing it as a short-term ceiling. On the flip side, put writers are defending the 56,500–56,600 levels, forming a visible support shelf.

With open interest buildup clustering around both edges of the current range, the market appears reluctant to commit to any strong directional stance. This aligns with the low-volatility grind we’ve seen over the past few sessions.

Unless the index breaks past these levels convincingly, prices are expected to remain range-bound, favoring intraday traders over trend-followers. A sustained move above 57,300, however, could result in short covering and fresh buying, flipping the narrative in favor of bulls.

 Momentum Indicator: RSI Signals Lack of Strength

The Relative Strength Index (RSI) continues to hover below the neutral 50 mark, reinforcing the view that buying momentum remains absent. This reflects the current market state — one of consolidation, hesitation, and wait-and-watch sentiment. A pickup in RSI above 50, especially with a price close above 57,350, could act as the first signal of improving trend strength.

 Market Outlook: Neutral With a Bullish Trigger on Breakout

• Support Zone: 56,600 – 56,800
  
  
• Resistance Band: 57,300 – 57,400
  
  
• Breakout Level: Close above 57,350 to unlock bullish momentum
  
  
• Breakdown Risk: Below 56,600 could accelerate selling pressure
  
  

For now, the bias remains neutral, with a slight bearish undertone as long as the index remains capped below its immediate resistance. A convincing breakout above the 57,300–57,350 zone will be crucial to reviving bullish sentiment and confirming trend strength.

Until then, traders are likely to remain on the sidelines or deploy range-based strategies as the index oscillates within a tightly defined band.