Bullish Structure Intact: Nifty Bank Closes Above Key Retracement, Support Shifts Higher

The Nifty Bank index extended its upward trajectory, breaking decisively past the 0.50% Fibonacci retracement barrier and closing firmly above it. This move strengthens the case for continued gains, as the index continues to absorb every dip with strong buying support. Heavyweight private and PSU banks have led the charge, staging robust reversals and adding further momentum to the bullish tone.

Over the past two weeks, the index has steadily formed higher lows, reinforcing its resilient and robust structure.

Technical Overview

Thursday’s session reflected a familiar pattern after a gap-up start that was nearly retraced, strong buying from key support zones in the final hour revived sentiment. This recurring behavior—where old resistance levels are now acting as dependable supports—underscores the market’s underlying strength.

On the daily chart, Nifty Bank closed firmly above the 0.50% retracement level, reaffirming the classic shift of resistance into support. Any pullbacks are now likely to serve as fresh accumulation opportunities.

• Closing Level: 55,727.45 (+234.15 points)
  
  
• Immediate Support Zone: 55,300–55,400
  
  
• Upside Resistance: 56,080 (near-term hurdle)
  
  
• Momentum Indicators: RSI steady above 60, highlighting sustained bullish momentum
  
  

Derivatives Snapshot

The derivatives setup continues to point toward optimism:

• At the 56,000 strike, the open interest of 13.20 lakh contracts has reinforced it as a strong resistance ceiling.
  
  
• The 55,000 strike holds the highest put OI of 14.44 lakh contracts, cementing it as a dependable support base.
  
  
• Fresh put writing at current levels indicates limited conviction for sharp downsides.
  
  
• Call unwinding reflects improving confidence among traders.
  
  

The Put-Call Ratio (PCR) edged up to 1.10 from 1.09, sustaining its bullish undertone.

Market Sentiment & Outlook

The bullish tone for Nifty Bank remains intact:

• Dips are consistently being bought, with the index refusing to close below its previous day’s low.
  
  
• The derivatives structure, with call writers shifting toward higher strikes and put writers adding positions closer to the money, signals persistent bullish traction.
  
  
• PCR holding above 1.00 further reinforces this outlook.
  
  

As long as Nifty Bank sustains above the 55,200–55,300 zone, buyers are expected to stay active. On the upside, a decisive breakout above 56,000 could unleash the next leg of the rally.

Adding to the optimism, FPI short-covering and leadership from PSU banks have further fueled sentiment. While short phases of profit booking may occur post the Fed-driven rally, the broader trend stays firmly in favor of the bulls.