Nifty Bank stages recovery but struggles below 20-DEMA; 54,500 remains key hurdle

Derivatives Analysis Report - Dhupesh Dhameja, Derivatives Research Analyst, SAMCO Securities

Nifty Bank witnessed a choppy yet recovery-driven week, as the index managed to stabilize after last week's sharp selling pressure and closed at 54,055.35, up 615.95 points (+1.15%). Despite intermittent volatility, the index continued to trade inside the previous week's range, reflecting lack of aggressive directional momentum.

On the daily chart, Nifty Bank is attempting to hold above the 0.50 Fibonacci retracement zone near 53,700, while the falling 20-DEMA placed near 54,360 continues to act as an immediate resistance hurdle. The weekly structure indicates recovery from lower levels, but sustained upside momentum is still missing as the index remains below key moving averages. Momentum indicators remain neutral, with daily RSI near 45.87 and weekly RSI around 42.50, indicating gradual improvement in momentum but absence of strong bullish strength.

From the Derivatives perspective, PCR stands near 0.74, highlighting a cautious undertone in the options segment. Significant call writing is visible near the 54,500-55,000 strike region, making it a strong resistance cluster, while put writers are actively defending the 53,500-53,000 zone, indicating support-based buying at lower levels.

Overall, the broader structure suggests that Nifty Bank index remains trapped inside a broad consolidation range, and till the time the index sustains below the 20-DEMA and the 54,500 zone, a cautious range-bound approach with stock-specific opportunities and range-trading strategy remains favourable for the current market setup.

Source : Equity Bulls

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NiftyBank DerivativesAnalysisReport SAMCOSecurities