Nifty Bank stages strong comeback
Dhupesh Dhameja,
Derivatives Research Analyst,
SAMCO Securities
Mumbai, 3 June 2026: Nifty Index witnessed a volatile session and staged a strong recovery from its intraday low, helping the index trim most of the day's losses.
Derivatives Analysis Report
Nifty Trims Intra-Day losses after strong pullback
Despite the rebound, the index closed marginally lower by 0.33% (-77.95 points) at 23,405.60. The recovery indicates buying interest emerging near lower levels, but the index continues to trade below its 20-DEMA placed near 23,708, keeping the broader short-term trend under pressure.
On the daily chart, Nifty once again defended the crucial support zone of 23,328–23,300, which has acted as a demand area over the last few sessions. The formation of a long lower shadow highlights aggressive buying from lower levels and suggests that market participants are not willing to let the index slip easily below this support band. Momentum indicators remain subdued. The RSI is placed near 41.4, trading below its signal line and remaining under the neutral 50 mark, reflecting weak momentum and the absence of strong bullish participation.
From the derivatives perspective, the options data reflects a balanced-to-cautious setup. Significant put open interest is concentrated at the 23,300 and 23,000 strikes, suggesting these levels are likely to provide immediate support. On the upside, heavy call writing is visible at 23,500 and 23,700 strikes, which may cap any recovery attempt. The PCR stands at 0.98, indicating a relatively balanced positioning. Meanwhile, India VIX surged 6.01% to 16.28, the spike in volatility suggests traders remain cautious and are anticipating larger directional moves in the coming sessions.
For the upcoming session, 23,300–23,250 remains a crucial support zone. A sustained move below this level could trigger fresh selling pressure towards 23,116. On the upside, the index needs to reclaim and sustain above 23,500, followed by the 20-DEMA zone near 23,700, to improve sentiment and trigger meaningful short covering. Until then, the broader undertone remains cautious, with recoveries likely to face selling pressure at higher levels.
Nifty Bank: Buying emerge near make-or-break level
Nifty Bank witnessed a strong recovery from its intraday low and snapped recent weakness, closing 471.30 points higher (+0.88%) at 54,185.95. The index tested the crucial 53,200–53,000 support zone, a make-or-break area that has repeatedly attracted buying interest in recent weeks. The sharp rebound from these levels indicates that buyers continue to defend lower levels aggressively, preventing a deeper correction.
Technically, the recovery was supported by short covering after the index approached a critical support zone. However, Nifty Bank continues to trade below its 20-DEMA, placed near 54,360, suggesting that the broader short-term trend remains neutral to weak. A decisive close above the 20-DEMA is required to confirm sustained strength and trigger fresh momentum on the upside. The momentum indicator RSI has improved to 47.6 and moved above its signal line, reflecting improving momentum and supporting the possibility of further short-covering.
From a derivatives perspective, the options data highlights a balanced setup. Significant put open interest is concentrated at the 54,000 and 53,500 strikes, reinforcing the support zone. On the upside, notable call writing is visible at 54,500 and 55,000 strikes, which may act as immediate resistance levels. The PCR stands at 0.92, reflecting a neutral stance among option traders.
For the coming session, 54,000–53,900 remains the immediate support zone. As long as the index holds above this area, short-covering could extend the recovery towards 54,500–55,000. However, a sustained move above the 20-DEMA and 55,000 mark is essential to shift sentiment decisively in favour of the bulls. On the downside, failure to hold 53,900 could once again bring the crucial 53,200 make-or-break support zone into focus. Overall, the sharp recovery from lower levels is encouraging, but confirmation of a trend reversal is still awaited.
Technical Analysis Report
Nifty slips further but Recovers; Descending channel remains intact
Om Mehra,
Technical Research Analyst,
SAMCO Securities
Nifty ended the session at 23,405.60, down 0.33%, forming a Dragonfly Doji on the daily chart. The index continues to trade within a downward-sloping channel; however, the strong recovery after the mid-session decline suggests the formation of a short-term base. The index is currently trading below all key moving averages.
The daily RSI is positioned near the 40 level. The MACD remains in negative territory, while the histogram continues to indicate a potential reversal at this stage. The lower boundary of the descending channel, placed around 23,150–23,200, will remain a key support zone to watch. A breach below this level may open the door to further weakness.
On the upside, the 23,600–23,750 zone, which coincides with the 20-day SMA and the channel midline, is likely to act as immediate resistance. Unless the index reclaims mid-band on a closing basis, the short-term pullback may be short-lived.
Nifty Bank ended the session at 54,185.95, up 0.88%, forming a bullish candle on the daily chart. However, the recovery needs to be viewed in context, as the index continues to trade below its 20-day SMA, which is placed near 54,200.
The hourly chart indicates that the index has bounced from the 53,000 zone, a level that has provided support on multiple occasions. The RSI is positioned near 47, recovering from its recent lows. Notably, a positive divergence is visible on the RSI. The MACD remains in positive territory.
The immediate resistance for Nifty Bank is placed in the 54,500–54,800 zone, while support is seen around 53,700, followed by 53,500. The index may gain strength if it sustains above 53,600 in the coming session.
