Bank Nifty Structure Turns Fragile; Resistance Shifts Lower to 55,200

The Nifty Bank index continued its downtrend, registering a follow-through breakdown below its ascending trendline and slipping under the psychological 55,000 mark. The structure has turned fragile, with the benchmark failing to cross the previous day’s high for five consecutive sessions — underlining persistent caution among traders.

Technical Overview

• The index has firmly closed below the 55,000 zone, which coincides with the 0.382 Fibonacci retracement and the 20-day EMA — forming a key resistance cluster.
  
  
• On the daily chart, a strong follow-through bearish candle confirmed the trendline breakdown.
  
  
• Nifty Bank is now trading below both the 20- and 50-day EMAs, which are expected to act as supply zones.
  
  
• Momentum signals are weakening, with the RSI slipping under 50, reinforcing bearish control.
  
  
• The index ended 145.30 points lower at 54,976.20, just above the 54,900–54,850 support, aligned with the 100-day EMA.
  
  

Resistance has shifted downward to 55,150–55,200, and unless this zone is reclaimed, every rebound is likely to attract fresh supply. A decisive breach below 54,800 could open the gates toward 54,500.

Derivatives Snapshot

• Call writers dominate, with fresh open interest of 14.35 lakh contracts at the 55,500 strike, cementing this as a resistance ceiling.
  
  
• On the downside, put OI of 13.10 lakh contracts at 55,000 signals immediate support.
  
  
• The Put-Call Ratio (PCR) eased to 0.77 from 0.80, underscoring bearish sentiment and suggesting sellers continue to hold the edge.
  
  

Market Sentiment & Outlook

The broader setup of Nifty Bank has turned defensive. Consecutive lower closes, failure to surpass prior-day highs, and trading below key moving averages underscore structural weakness. Importantly, the 55,000 zone has flipped from support into resistance, shifting the balance in favor of bears.

As long as the index stays capped under the 55,200–55,250 band, sellers are likely to dominate. A breakdown below 54,800 could accelerate declines toward 54,500, keeping the near-term bias sideways to bearish.