Relentless Rally Pushes Nifty Bank to New Peaks; Technical Strength Points to Further Upside

Nifty Bank extended its strong upward momentum by registering fresh lifetime highs and moving deeper into uncharted territory, supported by robust bullish sentiment and persistent buying interest. The index continues to form a series of higher lows, reinforcing a favourable and structurally sound technical trend. Importantly, the earlier psychological resistance zone of 58,000–58,500 has now transitioned into a firm demand region, providing solid support to the ongoing rally.

On Thursday, the index surged 131.65 points to close at 59,440.10, maintaining its strong follow-through and signalling that the bulls remain firmly in control. This sustained strength reflects broad-based buying activity and resilient market confidence.

Technical Outlook: New Highs Confirm Strength

Nifty Bank’s ability to repeatedly print new all-time highs highlights strong underlying demand. Even minor intraday declines are being quickly absorbed, indicating that traders are willing to accumulate at every dip.

The index comfortably trades above its 10-day and 20-day exponential moving averages (DEMA), both of which continue to act as dynamic support zones. The successful conversion of earlier resistance areas into fresh support reinforces the long-term bullish structure and the alignment of the uptrend.

As long as the index remains above the 59,000–58,850 support band, traders are likely to continue following a buy-on-dips strategy.

On the upside, immediate resistance lies near 59,500, where strong call-writer activity has emerged. A decisive close above this level could clear the path for further momentum-driven gains. Conversely, any dip below 58,850 may attract renewed buying interest, as the structural supports remain firmly intact.

Momentum Indicators: Strong but Slightly Overbought

Momentum indicators continue to validate the bullish outlook. The 14-day RSI remains above 70, signalling strong short-term momentum.

Though the RSI indicates slightly overbought conditions—suggesting the possibility of brief consolidation or sideways movement, the overall trend remains decisively upward. The 58,950–59,000 region is expected to act as a strong pivot zone, while 59,500 remains the immediate level to watch for a potential breakout.

Derivatives Snapshot: OI Trends Support Further Upside

The derivatives landscape reflects strong optimism and sustained bullish sentiment:

• 60,000 Call strike: ~11.96 lakh OI — a key resistance point
  
  
• 59,000 Put strike: ~14.70 lakh OI — a firm support base
  
  
• Put-Call Ratio (PCR) steady at 1.20, indicating an optimistic, long-biased market
  
  

Put writers are building substantial positions at near-the-money levels, while call writers are steadily shifting to higher strikes. This aggressive put writing, combined with call unwinding and rollovers, underscores confidence in the index's continued upside.

Market Outlook: Bulls Maintain Strong Command

Nifty Bank has been consistently marking fresh all-time highs, supported by broad-based strength across private and public sector banks. Ahead of the monthly expiry, the index continues to show strong momentum, with every minor dip attracting renewed buying.

Trading comfortably above the 10-DEMA, the structural strength of the index remains intact. Previous resistance zones have now turned into reliable support levels, reinforcing a solid long-term positive narrative.

With put writers adding exposure and call writers shifting to higher levels, the overall outlook remains firmly upward-biased. A breakout above 59,500 could trigger the next leg of the rally, while only a sustained move below 59,000 may introduce short-term weakness.