Demand Zone Strengthens as Nifty Bank Rebounds; Bullish Momentum Hinges on 59,500 Breakout

Nifty Bank attempted to stabilise after a volatile trading phase, reclaiming both the 10-DEMA and 20-DEMA, and forming a constructive rebound candle, a clear indication of renewed buying interest around the demand zone. The index also moved back above the psychological 59,000 mark, signalling a strong bounce that is likely to act as a firm support base in the sessions ahead.

On Friday, Nifty Bank rose 180.10 points to close at 59,389.95, with the price action reflecting growing resilience as buyers consistently absorb dips. However, a decisive breakout above 59,500, the recent swing high, will be crucial to confirm a sustained uptrend.

Derivatives Snapshot: Market in Wait-and-Watch Mode

The derivatives setup highlights a cautiously neutral tone, with traders preferring to stay defensive until a clear directional breakout emerges.

Key Observations

• Call writers have added significant open interest at at-the-money and nearby strikes, indicating persistent supply at higher levels.
  
  
• Put writers have selectively unwound positions and shifted to lower strikes, signalling expectations of continued consolidation rather than an immediate breakout.
  
  
• A notable 13.39 lakh call OI at the 59,500 strike reinforces this level as a major resistance zone.
  
  
• On the support side, 13.23 lakh put OI at the 59,000 strike, offering a near-term cushion.
  
  
• The Put-Call Ratio (PCR) remains steady at 0.89, reflecting marginal caution and sustained defensive positioning.
  
  

Market Outlook: Range-Bound but Gradually Improving

Nifty Bank’s late-week bounce has helped establish a meaningful demand pocket, but the broader structure still shows vulnerability. The index continues to form a lower-high pattern, signalling persistent selling pressure near 59,500, a level the bulls must clear to regain strong momentum.

Key Levels to Track

• Support Zone: 58,800–59,000
  This zone, previously a resistance area, now acts as a crucial base for the current upward attempt.
  
  
• Resistance Zone: 59,500
  A break above this level is essential to confirm strength and extend the up-move.
  
  

Directional Scenarios

• Bullish Case:
  A sustained move above 59,500 could revive positive momentum and open the path toward 60,000, marking a resumption of the upward trend.
  
  
• Bearish Case:
  A slip below 58,800 may weaken the market structure, potentially triggering a sharper decline toward 58,500 as selling pressure accelerates.
  

Conclusion

Nifty Bank is showing early signs of recovery with strong support reclaim and improved price action. However, the broader trend remains range-bound as the index consolidates within a tight band. A decisive breakout above 59,500 will determine whether bullish momentum can reassert itself or if the index will continue to drift sideways.