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Technical Analysis Report: Nifty remains range bound; VIX Cools but Weakness in INR Persists
Market Commentary
Nifty Bank trades range-bound with negative bias; downside pressure persists below 54,100
Posted On : 2026-05-19 20:43:12( TIMEZONE : IST )
Dhupesh Dhameja, Derivatives Research Analyst, SAMCO Securities
Nifty Bank index traded with a negative bias and closed lower by 0.24% at 53,409, reflecting continued consolidation amid weak follow-through buying in the banking space. On the daily chart, the index continues to trade below its 10-DEMA placed near 54,120 and remains trapped around the crucial 53,300-53,700 zone, indicating absence of strong directional momentum after the recent corrective phase.
Technically, the index is witnessing a gradual loss of upward momentum as every pullback rally is facing supply pressure near resistance levels, while buyers are still attempting to defend lower support zones. The inability to reclaim the 20-DEMA and key retracement levels suggests that the market structure remains cautious with a mild negative bias. Momentum indicator RSI is hovering near 41, reflecting subdued momentum and limited strength in the ongoing recovery attempts. The RSI sustaining below the neutral 50 mark indicates that bullish participation remains weak and traders are still preferring defensive positioning at higher levels.
From a derivatives perspective, aggressive call writing near 54,000-54,500 continues to cap immediate upside momentum, while meaningful put writing near 53,000 is offering short-term support on declines. PCR stands near 0.76, indicating cautious undertone with traders maintaining stock-specific and hedge-based positioning amid elevated volatility. The overall setup suggests that the banking index is currently in a range-bound consolidation phase with negative undertone, where volatility-driven moves are likely to continue in the near term. As long as the index remains below 54,100, a "sell on rise" strategy may continue to remain favourable for downside targets towards 53,000-52,800. However, a decisive close above 54,200 could trigger fresh short-covering momentum towards 54,700-55,000 levels.
