Nifty Bank at Inflection Point; Holding 57,500 Crucial for Bulls

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

Nifty Bank ended the session at 57,727.35, declining 449.70 points (-0.77%), slipping below the crucial 58,000 psychological mark after witnessing profit booking from its recent swing high of 58,700. The index has now approached a make-or-break support zone near 57,500-57,400, where buyers are expected to defend the ongoing medium-term uptrend.

Technically, the index continues to trade above its 10-DEMA, placed near 57,450, indicating that the broader short-term trend remains positive despite the recent correction. However, today's bearish candle reflects weakening momentum after failing to sustain above the 58,500-58,700 resistance zone. The immediate support is placed at 57,500-57,400, followed by the key 57,000 level. A sustained breach below this support band could accelerate selling pressure towards 56,600-56,500. On the upside, the index needs to reclaim 58,000, followed by a decisive move above 58,700 to resume the prevailing uptrend and target fresh highs.

Momentum indicators continue to remain supportive, with the RSI at 61.92, comfortably above its moving average of 64.19, indicating that momentum has cooled from overbought territory but remains in the bullish zone.

From a Derivatives perspective, the undertone has turned cautious. The overall Put-Call Ratio (PCR) stands at 0.98, suggesting a balanced market sentiment. Option chain data indicates significant Put Open Interest at 57,500 and 57,000 strikes, reinforcing these levels as immediate support. Meanwhile, the highest Call Open Interest is concentrated at 58,000, followed by 58,500 and 59,000, highlighting a strong supply zone on the upside. The build-up of Call positions near 58,000 suggests that bulls may face resistance unless the index decisively crosses this hurdle.

Overall, 57,500-57,400 remains the make-or-break zone for Nifty Bank. Holding above this support could trigger a fresh recovery towards 58,500-58,700, while a breakdown below it may invite further profit booking towards 56,600-56,500.

Source : Equity Bulls

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NiftyBank SAMCOSecurities TechnicalAnalysisReport