Nifty Bank Outlook: Sideways Trend Persists as Sellers Cap Upside

Nifty Bank continued to trade with a sideways-to-weak bias, failing to sustain gains at higher levels and encountering selling pressure on every minor bounce. The index has been forming a lower-high structure, signalling weakening bullish momentum and indicating that sellers remain active near key resistance zones.

On Thursday, Nifty Bank closed almost flat, slipping 13.90 points to settle at 58,912.85, reflecting indecision and a lack of strong directional conviction.

Price Action Overview: Lower Highs Keep Trend Under Pressure

The index currently trades below the 20-day Exponential Moving Average (DEMA), underscoring a loss of upside strength. Every intraday recovery is witnessing profit booking or fresh short build-up, restricting any meaningful upside.

Key technical highlights:

• Lower highs persist, signalling weakening bullish sentiment.
  
  
• The index is hovering around 58,600–58,800, an important demand zone.
  
  
• 58,600 now acts as a critical make-or-break level.
  
  
• Upside remains capped unless Nifty Bank decisively crosses 59,500–59,700.
  
  

Until a sustained breakout above this resistance band occurs, rallies may remain corrective rather than trend-changing.

Bank Nifty Technical Range: Levels to Watch

The broader trading range continues to be:

• Upside Resistance: 59,700
  
  
• Downside Support: 58,600
  
  

The prevailing structure highlights consolidation, with no strong directional momentum. Momentum indicators remain neutral:

• RSI near 50, indicating a lack of strength from both bulls and bears.
  
  

This supports the view of a time-wise consolidation instead of a sharp decline.

Bank Nifty Derivatives Snapshot

The derivatives setup reinforces the ongoing cautious tone in the market.

Key F&O Observations

• Call writers added significant positions at ATM and nearby strikes, strengthening overhead resistance.
  
  
• Put writers partially reduced positions and shifted to lower strikes—suggesting an extended consolidation phase.
  
  
• Heaviest call OI buildup:
  
  
  • 59,500 strike → 18.34 lakh contracts (major resistance)
    
    
• Heaviest put OI buildup:
  
  
  • 58,500 strike → 11.02 lakh contracts (crucial support)
    
    

The Put-Call Ratio (PCR) declined slightly to 0.70 from 0.72, indicating increased caution and a bearish undertone at higher levels.

Bank Nifty Market Outlook

Nifty Bank remains in a sideways-to-negative bias with sellers actively defending resistance.

Bullish Scenario (Only if Breakout Happens)

A decisive close above 59,700:

• May trigger short covering
  
  
• Could open the door for 60,100 levels
  
  
• Would indicate strength returning to the bulls
  
  

Bearish Scenario

A break below 58,600:

• Weakens broader structure
  
  
• May prompt fresh selling pressure
  
  
• Could drag the index towards 58,000
  
  

Neutral / Consolidation Scenario

Most likely near-term outlook:

• Continued trading within 58,600–59,700
  
  
• Time-wise consolidation
  
  
• Short-term traders may use extremes of the range for trades
  
  

Conclusion

Nifty Bank continues to struggle for upside traction, with sellers firmly positioned at higher levels. The index needs a strong breakout above 59,700 to shift the trend in favour of the bulls. Until then, range-bound movement and selling on rallies is expected to dominate market action.