Nifty Bank Posts Bullish Continuation Breakout; Traders Eye 57,000 for Next Leg Higher

The Nifty Bank index extended its upward momentum on Wednesday, delivering a bullish continuation breakout above its near-term resistance zone and surpassing the previous three-day high. This decisive move signals the start of a fresh leg of bullish momentum, supported by consistent buying interest near support levels.

The index rallied 303.45 points to close at 56,799.90, reaffirming sustained strength and showing that buyers remain firmly in control. As long as the index holds above the key support of 56,300, buying interest is expected to persist on intraday dips, keeping the broader outlook positive in the near term.

Technical Overview

From a technical standpoint, Nifty Bank’s breakout confirms the continuation of its bullish trend, indicating scope for further upside. The index remains comfortably above its 10-day exponential moving average (EMA), placed near 56,200, highlighting a strong demand base and well-defined trend support.

The 56,100–56,300 zone has now emerged as a “buy-on-dips” pocket for positional traders, with multiple rejections from lower levels confirming robust institutional participation. The medium-term setup remains constructive as long as the index sustains above 56,300, maintaining a healthy pattern of higher highs and higher lows.

Momentum indicators also strengthen the bullish narrative — the RSI (14) continues to hover above 65, pointing to improving momentum and strong underlying strength. On the higher side, immediate resistance lies near 57,000–57,150, while support remains intact around 56,150–56,300.

Key Technical Levels:

• Support: 56,100–56,300
  
  
• Resistance: 57,000–57,150
  
  
• Upside Target: 57,300
  
  

Derivatives Snapshot

Derivatives data reinforces the bullish undertone. Aggressive put writing has outpaced call writing, reflecting traders’ growing conviction at lower levels.

A notable open interest buildup of 23.53 lakh contracts at the 57,000 strike marks this zone as a critical resistance area, while substantial put OI of 13 lakh contracts at the 56,000 strike highlights strong downside support.

The Put-Call Ratio (PCR) climbed to 1.06 from 0.96, signaling improving sentiment and growing expectations for the index to sustain above key support. The gradual shift in call positions to higher strikes, along with fresh put additions near current levels, suggests renewed bullish bias and scope for further upside momentum.

Market Outlook

The Nifty Bank index continues to exhibit a firm bullish structure, trading steadily above its 10-day and 20-day EMAs. Renewed buying interest, supported by consistent put writing at near-the-money strikes, underscores a constructive tone among market participants.

As long as the index maintains trade above 56,300, the overall trend remains positive. A decisive breakout above 57,000 could trigger a short-covering rally, potentially propelling the index toward 57,300 in the near term.

On the downside, immediate support lies at 56,300–56,500, which is likely to absorb any profit booking. Until a clear directional move unfolds, traders may continue to adopt a range-trading approach — maintaining a bullish bias above 56,300, while awaiting a confirmed close beyond 57,000 to validate the next leg of the rally.

Key Takeaways

Bottom Line

The bulls remain firmly in charge, with Nifty Bank comfortably sustaining above key moving averages and derivatives positioning supporting the positive bias. A sustained move above 57,000 could open the door for the next leg higher toward 57,300, reaffirming the index’s strong bullish momentum.

Until then, traders should continue to buy on dips near 56,300, maintaining a cautiously optimistic outlook for the days ahead.