The Nifty Bank index sustained its bullish momentum ahead of the monthly expiry, staging a sharp rebound from its key support levels. The index completed a constructive retest of its breakout neckline and is now showing renewed signs of continued upward momentum. Holding firmly above earlier resistance zones, Nifty Bank continues to maintain a higher-high, higher-low structure, reaffirming its robust and well-defined bullish trend.
Nifty Bank Technical Overview: Strength Holds Above Crucial Support
On Monday, Nifty Bank advanced 414.65 points to close at 58,114.25, maintaining its position above the breakout neckline with strong follow-through buying interest. From a technical standpoint, the index has built a solid base above the critical 57,500 zone, closing slightly below its previous session’s range — a setup that positions the market for a crucial upcoming session.
Moreover, its sustained position above the short-term moving averages (10-day and 20-day DEMA) continues to lend firm support to the ongoing uptrend. Each minor dip is being actively bought, indicating persistent accumulation and a positive bias among traders.
The 57,500–57,600 zone remains a vital “buy-on-dips” pocket, supported by the breakout neckline and key swing lows, providing a strong technical floor.
Key Levels to Watch (Bank Nifty):
- Support: 57,500–57,600
- Resistance: 58,500–58,600
On the upside, the index may encounter interim resistance near 58,500–58,600, coinciding with previous supply areas. However, with the ongoing higher-high, higher-low pattern, the probability of a decisive breakout above 58,600 remains elevated.
As long as the index sustains above 57,500, the broader outlook remains bullish, supported byits strong technical structure.
Momentum Indicators: RSI Confirms Strength
Momentum indicators reinforce the prevailing optimism. The RSI (14) remains above the 70 mark, signaling strong buying momentum and indicating that the uptrend remains intact despite mild overbought conditions.
Hence, 57,500–57,600 acts as a crucial support cluster, while 58,500–58,600 serves as immediate resistance on the higher side.
Derivatives Snapshot: Balanced Yet Positive Setup Ahead of Expiry
The derivatives data indicate a cautiously optimistic tone ahead of the monthly expiry, with both long and short positions being actively built—suggesting a balanced but positive setup.
- Call OI: 13.92 lakh contracts at the 58,500 strike, marking a key resistance area.
- Put OI: 19.17 lakh contracts at the 58,000 strike, highlighting strong downside support.
- Put-Call Ratio (PCR): Climbed to 1.05 from 0.83, reflecting a bullish undertone and indicating that any dip is likely to attract fresh buying from positional traders.
This balanced positioning signals that Nifty Bank may continue to trade within a defined range in the short term while maintaining a positive bias.
Market Outlook: Buy-on-Dips Strategy Remains Intact
The Nifty Bank index continues to display a strong bullish structure, with major banking heavyweights driving the rally. Each minor decline is swiftly absorbed, indicating a healthy, sustainable uptrend. Although the index appears slightly extended in the near term, the higher-high, higher-low formation offers room for further accumulation on declines.
Persistent put writing at lower strikes reinforces traders’ confidence in the ongoing rally. A sustained move above 58,500 could trigger renewed buying and short-covering, potentially propelling the index toward the 59,000 zone in the near term.
On the downside, strong demand is expected around 57,500–57,700, likely to cushion any short-lived corrections. As long as the index remains above this key support band, the broader trend stays decisively bullish.
Trading Strategy:
Maintain a Buy-on-Dips approach. A decisive close above 58,500 could open the path toward 59,000 and beyond, while dips toward 57,600–57,500 should be viewed as opportunities to re-enter long positions.
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