NIFTY Bank Momentum Accelerates; Dips Seen as Buying Opportunities

Session Recap

Tuesday’s session reaffirmed the prevailing bullish undertone in Nifty Bank. After opening slightly weak, the index rebounded sharply from key support levels and witnessed sustained buying interest through the day.

The index closed 224.90 points higher at 61,174.00, extending its upward trajectory and confirming positive follow-through.

Technical View

Nifty Bank continues to display robust price action, consistently attracting demand on minor declines and maintaining a higher-low formation, signaling underlying strength.

Key Technical Highlights:

• Breakout Confirmed: 60,800–61,000 neckline zone now acting as immediate support
• Trading above 10 & 20-day EMAs: Indicates sustained short-term momentum
• RSI above 60: Momentum oscillator firmly in bullish territory
• Upside Potential: Path remains open toward all-time high zone near 61,700

As long as the index sustains above the reclaimed 61,000 support band, the bullish structure remains intact.

Derivatives Snapshot

Options positioning reflects growing optimism.

Open Interest Highlights:

• 61,500 Call Strike: ~6.14 lakh contracts (immediate resistance hurdle)
• 61,000 Put Strike: ~8.72 lakh contracts (strong demand cushion)
• Put–Call Ratio (PCR): 1.29 — signals dominance of put writing and strengthening bullish bias

Call writers shifting to higher OTM strikes indicate easing overhead pressure, while increased put writing near ATM levels reinforces confidence in the support base.

Key Levels to Watch

• Immediate Support: 61,000
• Secondary Support: 60,800
• Breakout Trigger: 61,250
• Upside Target: 61,700 (all-time high zone)

Market Outlook

The broader setup continues to favor a “Buy on Dips” strategy.

• Sustained trade above 61,250 could trigger fresh short covering.
• Holding above 61,000 keeps the bullish momentum intact.
• Minor pullbacks are likely to be viewed as accumulation opportunities.

Unless the 61,000 support is decisively breached, momentum remains firmly aligned in favor of the bulls, with the index positioned for a potential test of record highs.