Nifty Bank trades near critical zone – Samco

Nifty Faces Selling Pressure Near 24,200; Range-Bound Trade Likely Until a Decisive Breakout

Nifty ended the session at 23,962.80, gaining 80.75 points (+0.34%), but the recovery lacked conviction as the index witnessed selling pressure near the 24,150-24,200 resistance zone and once again failed to sustain above the 24,000 mark.

Technically, the index continues to trade below the 100-DEMA, suggesting that the broader trend remains cautious despite the recent recovery. The RSI has slipped towards the 50 mark, indicating that momentum has cooled after the recent rally, with buyers losing strength near higher levels.

On the Derivatives front, India VIX declined sharply by 8.97% to 13.36, indicating easing volatility, while the PCR stands at 0.79, reflecting a cautious undertone among market participants. Option chain data shows maximum Put Open Interest at the 23,500 strike, followed by 23,600, reinforcing the immediate support zone, whereas maximum Call Open Interest is concentrated at the 24,500 strike, followed by 24,200, highlighting aggressive supply at higher levels.

Going ahead, the index is likely to remain range-bound between 23,800 and 24,250, with sellers expected to remain active near the resistance zone. A decisive close above 24,250 is required to negate the prevailing supply pressure and revive bullish momentum, while failure to hold 23,800 could invite renewed selling towards lower support levels.

Until a breakout on either side, traders should continue to adopt a stock-specific approach and use rallies to book profits near resistance while accumulating quality names on declines towards support.

Nifty Bank at a Critical Juncture; 56,800-57,500 Range to Dictate Next Trend

 Nifty Bank recovered sharply in the latter half of the session to close at 57,252.45, up by 509.85 points (+0.90%), after witnessing buying interest near the 56,900-57,000 support zone. Although the index bounced back from intraday lows, it continues to trade below the immediate resistance area of 57,450-57,500, indicating that follow-through buying is still awaited before a fresh upmove can unfold.

Technically, the index is holding above its key support zone and continues to trade above its short-term trend structure, while the RSI has cooled to around 53 after slipping from the overbought zone, suggesting momentum has moderated but remains on the positive side. A decisive move above 57,500 could encourage fresh buying interest and pave the way towards 58,000, followed by 58,600, whereas failure to sustain above 57,000 may result in another round of consolidation or profit booking towards 56,500.

From the Derivatives perspective, the PCR stands at 0.85, indicating a neutral-to-cautious undertone. Option chain data shows maximum Put Open Interest at the 57,000 strike, followed by 57,500, while maximum Call Open Interest is concentrated at the 58,000 strike, followed by 58,500, highlighting immediate supply at higher levels.

Overall, Nifty Bank continues to trade near the crucial make-or-break zone of 56,800-57,000. As long as the index remains within the 56,800-57,500 range, range-bound activity is likely to persist. A sustained move above 57,500 could revive bullish momentum, while a break below 56,800 may tilt the bias in favour of the bears.