Nifty Bank Stuck in Consolidation; Range-Bound Trade Continues Between 53,500–54,500

Nifty Bank continued to lack a clear directional bias, extending its sideways trajectory while oscillating within a broader consolidation band. Intraday volatility remained elevated, with sharp two-way swings, but the index managed to recover from its intraday lows. On the daily chart, a hammer-like candlestick pattern emerged, highlighting persistent buying interest at lower levels and reflecting a resilient, range-bound sentiment.

Technical Analysis: Nifty Bank

• On Friday, Nifty Bank advanced 39.10 points to close at 54,114.55. Despite a highly volatile session, marked by wild fluctuations on both sides, the index managed to hold firmly above the 53,900 level. This marked the second consecutive session where the index closed above its previous day’s low, suggesting that sustained bearish momentum has yet to fully unfold.
  
  
• Technically, Nifty Bank continues to lack a decisive trend, with bulls and bears alternating dominance. The index remains trapped in a broad consolidation range of 53,500–54,500, and only a breakout from this band will ignite a meaningful directional move.
  

Key Levels for Nifty Bank:

• Immediate support: 53,500–53,400
  
  
• Resistance: 54,500
  
  

A breakout above 54,500 could spark a rally, while a breakdown below 53,900 may lead to fresh selling pressure.

Derivatives Snapshot

In the options market, there was a cautious sentiment as call writers held a dominant position at higher levels:

• The 55,000 strike saw substantial call writing, with open interest rising to 13.56 lakh contracts, confirming it as a strong resistance zone.
  
  
• On the downside, the 54,000 strike attracted the highest put open interest at 12.93 lakh contracts, reinforcing it as immediate support.
  
  

Fresh call writing near the current spot levels suggests limited conviction for a sustainable upside. Meanwhile, consistently putting writing near at-the-money strikes reflects a neutral-to-defensive stance. The Put-Call Ratio (PCR) held steady at 0.86, indicating ongoing caution, though a decisive move is still awaited for confirmation.

Market Sentiment & Outlook

Nifty Bank remains directionless, trapped in the trading range of 53,500–54,500. Despite profit booking at higher levels, buyers are defending the key supports.

• The index is locked between the psychological barrier of 54,500 on the upside and the solid base of 53,500–53,400 on the downside.
  
  
• The concentration of open interest at these levels further reinforces the sideways bias.
  

What’s Next?

• A sustained breakout above 54,500 could lead to meaningful short covering and open the path for an extended rally.
  
  
• On the other hand, a breach below 53,900 may trigger a bearish continuation.
  
  

Until the breakout occurs, the index is likely to continue its range-bound action, favoring a "Range Trading" strategy with 53,500 as the floor and 54,500 as the ceiling.