Nifty Bank Ends the Week on a Strong Note; Breakout Signals Next Leg Higher

Nifty Bank ended the week on a renewed high, posting a decisive breakout that reinforces its bullish momentum. After recovering smartly from lower levels, the index closed above the previous three sessions’ highs, a clear indication of strengthening sentiment supported by a favourable monetary policy outcome. With a well-defined higher-low structure in place, the uptrend remains firmly intact and poised for further upside.

Strong Weekly Close Signals Bullish Continuation

On Friday, Nifty Bank rallied 488.50 points to close at 59,777.20, forming a strong bullish continuation candle and establishing a fresh swing low. The index once again took support at the 20-DEMA, triggering a swift rebound and highlighting the resilience of its ongoing trend.

From a technical perspective, the index registered a clean breakout above its past three-session range, confirming the dominance of bulls. With Nifty Bank reclaiming levels above 59,500, a previous supply zone that now acts as support, the pathway toward 60,150 has opened.

On the downside, the 59,000 zone, aligned with the 0.382 Fibonacci retracement, remains a robust demand pocket and a reliable support base.

Key Technical Levels

• Immediate Resistance: 60,150
  
  
• Next Resistance: 60,500
  
  
• Immediate Support: 59,500
  
  
• Crucial Support Zone: 59,000
  
  

The 14-day RSI remains well above 65, reinforcing bullish momentum and signalling that the trend continues to favour the upside.

Derivatives Snapshot: Put Writers Take Charge

The derivatives data support the bullish undertone, with put writers aggressively adding positions at ATM and nearby strikes. Call writers, on the other hand, have reduced exposure at lower levels and shifted to higher strikes, indicating expectations of continued strength and a buy-on-dips approach.

• 60,000 Call Strike: Nearly 12.81 lakh call contracts make this a key resistance level.
  
  
• 59,500 Put Strike: A strong 16.66 lakh put OI build-up marks this as a significant support zone.
  
  
• PCR: The Put-Call Ratio improved from 0.90 to 1.04, signalling rising bullish sentiment.
  
  

This shift in positioning reflects a broader optimistic stance among market participants, with put writers comfortably dominating at lower strikes.

Market Outlook: Bulls Remain in Control

Nifty Bank’s decisive breakout, aligned with a higher-low continuation structure, confirms strong bullish undertones. The combination of a supportive 20-DEMA, Fibonacci demand cluster near 59,000, and positive derivatives positioning strengthens the buy-on-dips strategy for the near term.

A sustained breakout above 60,000–60,150 would signal the start of the next upward leg, potentially pushing the index toward 60,500. As long as the index holds above 59,000, bulls are likely to maintain firm control.