Post-Recovery Momentum Fades in Nifty Bank; 58,900–59,000 Zone Remains Crucial

The Nifty Bank index failed to extend Friday’s sharp rebound, encountering fresh selling pressure in Monday’s session. The banking benchmark slipped below the previous day’s low, forming a lower-high structure, signalling weakening near-term momentum. Price action continues to remain indecisive, with the index oscillating inside a broader consolidation band.

Crucially, Nifty Bank is holding near its key demand zone, a region that has historically triggered strong upside reversals. Sustaining above this support area is essential to maintain the broader constructive bias.

Weak Follow-Through Dampens Sentiment

On Monday, Nifty Bank declined 538.65 points to close at 59,238.55, marking a lower-high formation and bringing the index back toward critical support.

Technically, the index is retesting a confluence support zone between 58,900–59,000, formed by an upward-sloping trendline and the 20-day EMA. This cluster continues to act as a pivotal demand pocket for the index.

On the upside, 59,700–59,800 emerges as an immediate resistance band, defining the upper boundary of the current consolidation range. Until the index breaks out of this zone, the broader setup remains sideways and non-directional.

The 14-day RSI hovering near 55 indicates a gradual fading of bullish momentum, aligning with the ongoing choppiness in the market.

Key Technical Levels

• Immediate Resistance: 59,700–59,800
  
  
• Major Resistance: 59,800
  
  
• Immediate Support: 59,000
  
  
• Critical Support Zone: 58,900–59,000
  

Derivatives Snapshot: Cautious Undertone Persists

The derivatives structure reflects a cautious sentiment among market participants.

• Call writers have aggressively added positions at ATM and nearby strikes, signalling stiff resistance at higher levels.
  
  
• Put writers have trimmed exposure and shifted marginally lower, indicating expectations of continued sideways movement.
  
  

A large build-up of nearly 14.29 lakh call contracts at the 59,500 strike positions this level as a major resistance.
Meanwhile, 12.21 lakh put contracts at the 59,000 strike reinforce it as a strong support zone.

The Put-Call Ratio (PCR) has slipped to 0.87 from 1.04, reflecting increasing bearish undertones. This suggests that any upside attempts may encounter heavy supply pressure.

Market Outlook: Range-Bound Bias Continues

Nifty Bank remains firmly trapped within its broader consolidation structure. The formation of a lower high near 59,800 confirms this zone as a critical short-term hurdle, while the 58,900–59,000 band stays a vital demand pocket.

The shifting derivatives positioning—with call writers dominating higher strikes and selective put writing at ATM levels—further reinforces expectations of range-bound and choppy trading.

What to Watch Ahead

• A breakout above 59,800 could trigger the next upside leg toward 60,100.
  
  
• A breakdown below 58,900 would weaken the broader constructive structure and may drag the index toward 58,500.
  
  

For now, traders should anticipate continued volatility within the established trading band unless a decisive breakout emerges.