The Nifty Bank index has been oscillating in a tight and indecisive range, mirroring the broader market's cautious mood. On June 24, 2025, the index closed the session with a modest gain of 402.55 points, settling at 56,461.90, reflecting resilience amid elevated supply pressure.
Despite starting the session with strength, it faced consistent rejection near the all-time high zone around 57,000, suggesting that a clean breakout is yet to materialize. However, the underlying bullish tone remains intact, supported by firm demand from lower levels.
Technical Analysis: Bulls Holding Ground, But Resistance Still Intact
While the index has yet to produce a breakout, several technical indicators continue to support the bullish structure:
Key Technical Highlights:
- The resistance zone remains at 57,000, which is the critical hurdle. A convincing close above this level could open the door to a move toward 57,500–57,700.
- Support Cluster: The area between 55,500 and 56,000 has emerged as a solid demand zone, cushioning every dip.
- Moving Averages: The index remains supported by the 10-day and 20-day exponential moving averages (DEMA), signaling underlying accumulation.
- Candlestick Signal: A Doji pattern has formed near resistance on the daily chart—indicating indecision and supply at higher levels.
- RSI Status: The Relative Strength Index hovers around 60, suggesting moderate bullish momentum without being overbought.
Conclusion:
Until the Nifty Bank closes above 57,000, the trend is likely to remain choppy. However, as long as 55,500 holds, dips will likely attract buying interest.
Derivatives Snapshot: Open Interest Points to Key Zones
Options data further clarifies market sentiment and helps identify key levels that traders are defending or attacking.
Key Observations:
- Call Side Resistance:
- 57,000 CE holds the highest open interest at 15.16 lakh contracts—indicating it is the primary resistance zone.
- Put Side Support:
- 56,000 PE has seen heavy writing with 19.03 lakh contracts, affirming strong demand near current levels.
- Put-Call Ratio (PCR):
- Stable at 0.85, suggesting a neutral-to-bullish undertone.
- Max Pain:
- Positioned at 56,000, indicating a magnet zone where most option buyers experience maximum loss as expiry nears.
📉 This data setup shows strong defensive support but also a capped upside until a breakout is confirmed.
Sentiment & Strategy: Buy-on-Dips in Focus
Despite facing consistent selling at higher levels, the lack of deep corrections reflects strong buying interest at lower zones. The technical setup, supported by moving averages and a solid base at 55,500, continues to favor bulls.
What Traders Should Watch:
- Breakout Trigger: A strong and sustained close above 57,000 could spark short-covering, propelling prices toward 57,500–57,700 quickly.
- Breakdown Level: Any breach below 55,500 would weaken the bullish setup and may trigger further selling.
- Strategy: Continue to adopt a "buy-on-dips" approach as long as the index trades above 55,500.
With no major bearish signals and volatility remaining subdued, the bias remains positive with caution.
Summary Table: Nifty Bank Snapshot
Aspect Details
Current Level 56,461.90
Key Resistance 57,000
Key Support 55,500–56,000
RSI Around 60 – bullish bias
PCR 0.85 – neutral-to-positive
Max Pain (Options) 56,000
Doji Signal Reflects indecision at higher levels
Moving Averages 10 & 20 DEMA acting as dynamic support
Final Word: Breakout or Breakdown?
The Bank Nifty is nearing a pivotal decision point. A decisive breakout above 57,000 could signal the start of a fresh uptrend, with the potential to reach 57,500–57,700 quickly. Conversely, a break below 55,500 may invalidate the bullish structure.
Until then, the market is likely to remain in a tight range with a bullish tilt—a situation ideal for short-term traders and positional investors following disciplined entry levels.
Easy & quick
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