Indecision Grips Nifty Bank as Range-Bound Structure Dominates Market Mood

Nifty Bank extended its subdued performance, remaining confined to a narrow trading range for the third straight session, and ended the November expiry on a muted note. Persistent and measured profit-booking kept upside attempts in check throughout the session. While the index has now posted three consecutive negative closes, it continues to hover above the crucial make-or-break support zone at 58,500. A sustained breakdown below this level may trigger a deeper correction in the coming days.

On Tuesday, Nifty Bank slipped 15.05 points to close at 58,820.30. The price action formed an indecisive structure, reflecting increasing seller dominance as the index repeatedly faced rejection at higher levels. The broader trend has turned cautious, with no clear directional bias emerging.

Technical View: Consolidation Near Key Support

Nifty Bank is currently in a consolidation phase, trading near its immediate support cluster. A confluence of the 58,500 horizontal support and the 10-day EMA is offering near-term stability, and holding above this level is essential for the bulls to regain momentum.

On the upside, the index faces stiff resistance within the 59,000–59,300 corridor. This zone marks a strong short-term ceiling, and only a decisive close above it will shift the bias back in favour of buyers. Failure to surpass this band, combined with sustained action below support levels, may expose the index to further weakness. Until these key boundaries are decisively breached, Nifty Bank is expected to oscillate within a sideways structure.

Momentum Indicators: Strength Intact Despite Consolidation

The 14-day RSI remains above 60, indicating underlying strength despite the ongoing consolidation. The indicator’s ability to maintain higher levels suggests that buyers are still active, though lacking strong follow-through.

Derivatives Snapshot: Writers Define the Range

The derivatives landscape reinforces the current range-bound setup, with both call and put writers actively defending their respective zones. Key highlights include:

• Significant call writing around near-ATM strikes, indicating strong overhead resistance.
  
  
• Meaningful put OI additions at lower levels, signalling firm support.
  
  
• A major OI buildup of 8.24 lakh contracts at the 59,000 CE level makes this a stiff resistance level.
  
  
• Robust put OI of 19.11 lakh contracts at the 58,500 PE highlights strong downside support.
  
  

Simultaneous OI additions on both sides reflect strong market indecision. The PCR at 1.07 indicates a mildly optimistic yet balanced sentiment.

Market Outlook

Nifty Bank continues to drift within a narrow consolidation channel, extending its short-term corrective phase and forming an intermediate top as each bounce encounters supply pressure. With the index trading near the critical 58,500 support, aligned with the 10-day EMA, this level becomes the final buffer for bulls. A breakdown below this support could accelerate declines toward 58,000.

Both call and put writers remain active around key strikes, reinforcing a non-trending range-bound structure.

• A decisive close below 58,500 may unlock further downside.
  
  
• Sustained trade above 59,300 is required for bulls to regain control.
  
  

Until major levels are taken out, traders can expect the index to maintain a sideways-to-negative bias, favoring range-bound strategies.