Bulls Lose Ground; Nifty Bank Hovers at Key Support

The Nifty Bank index extended its bout of profit-taking on Monday, posting its third consecutive negative close below prior-day lows and stalling its earlier bullish momentum. The index is now testing the crucial 55,000 mark, a psychological and technical level that will decide whether the bullish undertone can sustain.

On a weekly scale, Nifty Bank has already formed three straight bullish candles. However, the recent pullback hints at a short-term retracement, highlighting a cautious near-term setup.

Technical Overview

• Close: 55,284.75 (-174.10 points / -0.31%)
  
  
• Pattern: Three successive lower closes, signaling profit-booking pressure
  
  
• Support & Resistance Levels:
  
  
  • Support: 55,000–54,900 (psychological & technical base)
    
    
  • Resistance: 55,600 (shifted lower after repeated rejections)
    
    
• Momentum:
  
  
  • RSI: Hovering near 50, suggesting consolidation rather than full bearish dominance
    
    
  • Fibonacci: Rejection from the 0.50% retracement confirms fading bullish momentum
    
    

🔎 Key Observation: Unless the index reclaims resistance above 55,600 or manages a close above its prior day’s high, sellers are likely to stay in control.

Derivatives Snapshot

• Call Writers in Control: Heavy OI buildup of 15.47 lakh contracts at the 56,000 strike, cementing it as a resistance ceiling.
  
  
• Put Support: Maximum OI of 14.91 lakh contracts at the 55,000 strike, reaffirming the zone as key support.
  
  
• PCR (Put-Call Ratio): Slipped to 0.95 from 1.02, pointing toward sideways consolidation.
  
  
• Bias: Range-bound action likely between 54,900–55,600, unless a decisive breakout unfolds.
  
  

Market Sentiment & Outlook

The broader bullish undertone has stalled, with sellers tightening their grip at higher levels and the index testing a pivotal base at 55,000.

• If the index holds above 55,000–54,900, expect sideways consolidation with dips being absorbed.
  
  
• A break below 54,900 could extend the slide toward 54,500.
  
  
• On the upside, a decisive move above 55,650–55,700 would revive bullish momentum and open the path toward 56,000.