NIFTY Bank Engulfing Reversal Revives Bulls; 60,500 Put Base Strengthens Support

Sharp Recovery Reclaims Momentum

Bank Nifty closed at 60,949.10, up 1.27%, staging a strong rebound after opening at 59,947.80. The index remained firm throughout the session and settled near the day’s high, reflecting sustained institutional buying interest.

On the daily chart, the index formed a strong bullish engulfing candle, fully reversing the prior session’s weakness and decisively reclaiming the 60,500 mark — a level that now regains technical importance.

Technical Structure: Broader Trend Remains Firm

The index continues to trade above all key moving averages, reinforcing the strength of the broader trend.

Technical Highlights:

• Price positioned above short-, medium-, and long-term averages
  
  
• Ichimoku setup remains constructive with prices comfortably above the cloud
  
  
• Recent dip appears corrective rather than structural
  

The overall setup suggests that the primary uptrend is attempting to resume after a brief consolidation pause.

Derivatives Insight: 60,500–61,000 Tug of War

Options data reflects strengthening bullish undertones but within a defined range:

• 61,000 Call Strike: Highest Call Open Interest at 9.44 lakh contracts, marking immediate resistance.
  
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• 60,500 Put Strike: Highest Put Open Interest at 8.90 lakh contracts, establishing a solid near-term support base.
  

The Put–Call Ratio (PCR) has jumped from 0.85 to 1.14, indicating rising optimism and aggressive put writing at lower levels — a signal of improving sentiment.

This positioning highlights a clear battleground between 60,500 and 61,000, with a decisive breakout likely to dictate the next directional move.

Key Levels to Watch

Market Outlook: Breakout Setup Developing

As long as Bank Nifty holds above 60,500, the short-term bias remains positive.

• A sustained move above 61,200 could trigger short covering and open the path toward retesting the all-time high.
  
  
• Failure to clear 61,000–61,200 may keep the index oscillating within the established range.
  

With strong price action, supportive moving averages, and improving derivatives sentiment, the bulls appear to be regaining control — but confirmation awaits a decisive breakout above resistance.