Nifty bank extends consolidation – Samco

Nifty Extends Winning Streak with Five Consecutive Higher Highs; 200-DEMA in Focus

 Nifty gained 66.95 points (+0.28%) to close at 24,317.15, extending its recovery for the fifth consecutive session. The index has now registered five consecutive higher highs, reflecting sustained buying interest and strengthening bullish momentum. More importantly, Nifty continues to trade comfortably above its 20-DEMA, while steadily approaching the 200-DEMA, which is likely to act as the next major technical hurdle. A decisive close above the 200-DEMA would further strengthen the medium-term technical structure and could accelerate the ongoing recovery.

Momentum indicators continue to improve, with the RSI rising to 57.66, comfortably above the neutral 50 mark, indicating strengthening buying momentum.

Technically, 24,250 is expected to provide immediate support, followed by 24,100, while 24,370 (200-DEMA) remains the first major resistance, followed by 24,500. Sustaining above 24,370 would confirm a continuation of the prevailing uptrend and open the door for further gains.

From the Derivatives perspective, India VIX edged marginally higher to 12.16, though it continues to remain near lower levels, suggesting volatility remains well contained despite the recent rally. Option chain positioning also reflects strengthening bullish conviction, with maximum Put Open Interest concentrated at the 24,000 strike, followed by 24,200, indicating aggressive Put writing and a strengthening support base at lower levels. Meanwhile, maximum Call Open Interest is concentrated at the 24,600 strike, followed by 24,500, highlighting the immediate resistance zone where Call writers are actively defending higher strikes. The Put-Call Ratio (PCR) stands at 1.29, reflecting a constructive Derivatives setup and signalling that Put writers continue to maintain a strong presence.

Overall, the Technical and Derivatives landscape remains firmly positive, favouring a buy-on-dips strategy. As long as Nifty sustains above the 24,200-24,100 support zone, the ongoing recovery is likely to extend towards 24,370 (200-DEMA) and subsequently 24,500. A decisive close above the 200-DEMA would mark an important technical breakout and further reinforce the prevailing bullish trend.

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Nifty Bank Consolidates Above Long-Term Support; Positive Bias Intact

 Nifty Bank ended the session marginally lower at 57,147.50, down 58.40 points (-0.10%), as the index witnessed a subdued trading session after the recent recovery. Despite the minor decline, the broader technical structure remains constructive, with the index continuing to sustain above its 200-DEMA, indicating that long-term bullish undertones remain intact. The session was characterized by a narrow-range consolidation, suggesting that market participants are awaiting a fresh trigger before the next directional move.

From a Technical perspective, Nifty Bank has successfully defended the crucial 200-DEMA, which continues to act as a strong dynamic support. The index is now consolidating just below the 57,300-57,350 resistance zone, and a decisive move above this hurdle could pave the way for a retest of 57,800, followed by the psychological 58,000 mark. On the downside, 56,700-56,530 remains the immediate support zone, followed by 55,700, where buying interest is expected to emerge. Meanwhile, the RSI stands at 49.44, hovering just below the neutral 50 mark, indicating that momentum has stabilized and could strengthen further if the index manages to sustain above the recent consolidation range.

From the Derivatives perspective, the option chain continues to indicate a mixed but gradually improving setup. Maximum Put Open Interest is concentrated at the 57,000 strike, followed by 56,500, highlighting that Put writers are gradually shifting their positions to higher strikes and reinforcing support around the current market levels. On the resistance side, maximum Call Open Interest is concentrated at the 58,000 strike, followed by 57,500, suggesting that the immediate upside may remain capped until these Call writing zones are absorbed. The Put-Call Ratio (PCR) stands at 0.88, reflecting improving sentiment, although it continues to indicate a cautious undertone. India VIX edged up slightly to 12.16, but volatility remains relatively subdued, indicating that traders are not anticipating any significant surge in market volatility in the near term.

Overall, the Technical and Derivatives landscape continues to favour a buy-on-dips strategy as long as Bank Nifty sustains above the 200-DEMA and the 56,700-56,530 support zone. A decisive breakout above 57,300-57,350 would strengthen bullish momentum and increase the probability of the index extending its recovery towards 57,800 and 58,000 in the coming sessions.

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