Nifty Bank Witnesses Profit Booking Near 58,000; Bullish Structure Remains Intact

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

Nifty Bank witnessed profit booking after a sharp upmove and closed at 57,685.75, down 278.05 points (-0.48%). Despite the decline, the index continues to trade above all its key moving averages, indicating that the broader trend remains firmly positive. Importantly, the recent breakout zone of 57,100-57,300 continues to act as immediate support, suggesting that the ongoing decline is largely corrective in nature.

From a price action perspective, Nifty Bank remains in a higher high-higher low formation on the daily chart. The index faced resistance near the psychological 58,000 mark, where profit booking emerged after a strong rally over the past few sessions. A sustained move above 58,000 could trigger fresh momentum towards 58,500-58,600, while immediate support is placed at 57,500, followed by 57,000.

Momentum indicators remain supportive, with the RSI at 67.81, holding above its moving average and indicating that bullish momentum remains intact despite the day's weakness.

From a derivatives perspective, the PCR stands at 1.07, reflecting a slightly balanced undertone after the recent rally. Option chain data shows significant Put Open Interest at 57,500 and 57,000 strikes, reinforcing these levels as key support zones. On the upside, the highest concentration of Call Open Interest is visible at 58,000 and 58,500 strikes, suggesting these levels may act as immediate hurdles. Notably, the 58,000 strike has witnessed substantial Call writing, making it an important level to watch in the near term.

Overall, the trend remains positive as long as Nifty Bank sustains above the 57,200-57,000 support zone, while a decisive breakout above 58,000 could resume the next leg of the upmove.

Source : Equity Bulls

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NiftyBank DerivativeAnalysisReport SAMCOSecurities