Nifty: global sell-off drags the index lower
Dhupesh Dhameja,
Derivatives Research Analyst,
SAMCO Securities
Mumbai, 8 June 2026: Nifty index witnessed a sharp sell-off and closed 243.70 points lower (-1.04%) at 23,123, slipping below the crucial 23,250–23,300 support zone.
Derivatives Analysis Report
As Nifty Fails to Reclaim Breakdown Level, the Downside Risk Intensifies
The inability to recover above the breakdown level by the close suggests that bears remain firmly in control and increases the risk of further downside in the coming sessions.
Technically, the index has broken below its recent consolidation base and continues to trade below the 10-DEMA, currently placed near 23,460, reflecting a weak short-term trend. The RSI has slipped to around 36, indicating deteriorating momentum and strengthening bearish sentiment.
From a derivatives perspective, aggressive call writing was visible at 23,300 and 23,500, strikes, highlighting strong overhead resistance. On the downside, put writers have shifted lower toward 23,000 and 22,500 strikes, indicating expectations of a lower trading range. The PCR dropped to 0.65, reflecting a cautious-to-bearish undertone. Meanwhile, India VIX surged 7.85% to 17.02, signalling rising volatility and growing market nervousness.
For the upcoming session, the 23,250–23,300 zone will now act as immediate resistance. As long as the index remains below this zone, a sell-on-rise strategy remains favourable. A follow-through move below 23,100 could accelerate selling pressure towards 22,800 and 22,700 levels, while only a sustained recovery above 23,300 would ease the immediate bearish outlook.
Sellers Defend Higher Levels in Nifty Bank
Nifty Bank index witnessed profit booking after the recent recovery and closed 432.50 points lower (-0.79%) at 54,063.75. The index attempted to sustain above the crucial 54,300–54,400 zone but faced selling pressure near its 10-DEMA, resulting in a weak close and indicating that bulls are struggling to regain momentum.
Technically, the index remains trapped below the falling 10-DEMA, placed near 54,216, keeping the short-term trend cautious. The daily chart continues to show lower highs, while the RSI remains range-bound near 47, reflecting the absence of strong directional momentum and highlighting a tug-of-war between buyers and sellers.
From a derivatives perspective, significant put open interest is concentrated at 54,000 and 53,500 strikes, reinforcing the immediate support zone. On the upside, aggressive call writing at 54,500 and 55,000 strikes continues to cap recovery attempts. The PCR stands at 0.90, indicating a balanced-to-cautious sentiment. Meanwhile, India VIX surged 7.85% to 17.03, signalling rising volatility and increasing uncertainty.
For the upcoming session, 54,000 remains a make-or-break level. As long as the index sustains above this support, a pullback towards 54,500–55,000 remains possible. However, a decisive break-down below 54,000 could trigger fresh selling pressure towards 53,500 and 53,000. A range-trading approach with a negative bias remains favourable until the index reclaims the 10-DEMA.
Technical Analysis Report
Nifty breaks below key Fibonacci support
Om Mehra, Technical Research Analyst, SAMCO Securities
Nifty ended the session at 23,123, down 1.04%, forming a bearish candle on the daily chart as the index tracked the global sell-off. The decline has pushed the index below the 0.50 Fibonacci retracement level placed at 23,360, with the current close approaching the 0.618 retracement level at 23,100. A bearish crossover in the moving averages further highlights the weakness in the near term.
The RSI has fallen sharply to 36 and is approaching oversold territory. The MACD remains in negative territory. India VIX surged 7.85% to close at 17.02, marking a notable intraday spike in volatility.
The 23,000 level is now the immediate support zone. A close below this level could expose the index to 22,800 if the sell-off deepens. Unless Nifty reclaims 23,500 on a closing basis, the overall setup remains cautious.
Nifty Bank ended the session at 54,063.75, down 0.79%, forming a bearish candle on the daily chart. The index has slipped back below the 20-day SMA, placed near 54,070, erasing the brief close above it seen over the previous two sessions. Nifty Private Bank and Nifty PSU Bank also ended in the red, down 0.67% and 0.72%, respectively, indicating weakness across the banking sector.
The Bollinger Bands are visibly contracting, a pattern that typically precedes a sharp directional move in the coming sessions. The RSI is placed at 47, reflecting a lack of clear direction, while the MACD remains flat.
The immediate resistance is placed at 54,500, followed by 54,900. On the downside, 53,700 and 53,500 remain key support levels. A breach of this zone would confirm a bearish outlook and may open room for a sharper decline. Until a clear breakout from the Bollinger Band contraction occurs, the index is likely to remain volatile.
