Market Snapshot: Nifty Bank Opens 2026 on a Historic High
Nifty Bank kicked off 2026 on a strong and historic note, registering its first all-time high of the year and scaling an intraday peak of 60,203. Friday’s session witnessed decisive bullish continuation, with the index convincingly surpassing its previous record and entering uncharted territory.
The banking benchmark surged 439.40 points to close at 60,150.95, signalling the start of a renewed bullish phase. The strong close reflects improving participation, robust institutional buying, and rising confidence among market participants as the new year begins.
Technical View: Breakout from Consolidation Confirms Strong Uptrend
From a technical standpoint, Nifty Bank is firmly positioned at record highs, validating a decisive breakout from its prolonged consolidation phase. The index also recorded a strong close above its four-week high, reinforcing bullish conviction.
Notably, the index has formed higher lows for the fourth consecutive session, highlighting sustained buying interest on declines. Nifty Bank continues to trade comfortably above its 10-day Exponential Moving Average (DEMA), indicating that bullish momentum remains intact and intraday dips are being actively absorbed.
Former resistance zones have now turned into reliable support levels, strengthening the ongoing uptrend. Overall, the post-breakout structure remains favourable and points toward continued follow-through buying, with buyers clearly in control of the trend.
Momentum Indicators Signal Strengthening Bullish Momentum
Momentum indicators further support the positive outlook. The Relative Strength Index (RSI) has moved into a strong bullish zone and is sustaining above the 65 mark, signalling the resumption of momentum and the early phase of a trending move.
As long as the index holds above the psychological 59,500 level, minor intraday pullbacks are likely to be viewed as buy-on-dips opportunities. A decisive breakout above 60,200 could open the door for the next leg of the rally toward the 60,500 zone.
Derivatives Snapshot: Put Writing Strengthens Support Base
The derivatives setup mirrors the bullish undertone seen in the cash market. Put writers have aggressively added fresh positions at at-the-money and nearby strikes, reinforcing the downside base and limiting immediate correction risks.
On the other hand, call writers have reduced exposure at lower strikes and rolled positions higher, signalling expectations of continued upside rather than a near-term pause.
A significant build-up of nearly 19.13 lakh put contracts at the 59,500 strike has firmly established this level as a key support zone. On the upside, the addition of approximately 12.53 lakh call contracts at the 60,000 strike has emerged as an immediate resistance area.
The Put-Call Ratio (PCR) has climbed to 1.14, reflecting improving bullish sentiment and buyer dominance at lower levels.
Market Outlook: Buy-on-Dips Strategy Remains Favoured
Nifty Bank has delivered an explicit confirmation of its breakout from consolidation, posting fresh all-time highs and closing decisively above its recent four-week range. The ongoing higher-low price structure highlights sustained accumulation, with every dip being swiftly absorbed, underscoring strong investor confidence.
The 59,500–59,700 zone has now emerged as an immediate support band and will be crucial for maintaining short-term stability. Aggressively put writing near at-the-money strikes further reflects optimism and conviction for continued upside.
A sustained move above 60,200 could trigger fresh short covering and momentum buying, potentially pushing the index toward new record levels around 60,500. On the downside, any retracement toward 59,500 is expected to attract buying interest, keeping the broader buy-on-dips approach firmly intact in the near term.
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