Technically, the index continues to trade below its 10-DEMA while maintaining a lower-high structure, indicating persistent selling interest on every rebound. Momentum remains weak with the RSI slipping below 30, reflecting oversold conditions.

From a broader perspective, the weekly chart signals a decisive breakdown, as the index has breached major support areas and slipped below its 10-month low, highlighting strong bearish momentum and deterioration in the medium-term structure. On the hourly chart, the index continues to trade below the 20-EMA and 50-EMA, reinforcing sustained short-term weakness.

Meanwhile, India VIX has surged above the 20 mark and is currently hovering near 22–23, indicating a sharp rise in market volatility and heightened risk aversion among participants. The spike in volatility suggests that uncertainty and geopolitical concerns continue to dominate market sentiment, which may keep price swings elevated in the near term.

In the derivatives segment, the Put–Call Ratio (PCR) near 0.57 reflects a bearish undertone, with significant call writing at 23,500, while Put writers are gradually shifting toward the 23,000 strike, marking it as the immediate support. Unless the index reclaims 23,500, any rebound is likely to be viewed as a sell-on-rise opportunity, while a decisive break below 22,900 could extend the decline toward 22,600.

Persistent selling drags Nifty Bank  toward six-month low, structure turns weaker

Nifty Bank index remained under sustained selling pressure and formed a strong bearish candle, closing at 53,757 (-2.44%), decisively breaching the crucial 55,000 support and sliding toward its six-month low near the 53,500 zone, highlighting persistent weakness across the banking space. The earlier support at 54,650 has now turned into an immediate resistance, which also aligns with the 20-EMA on the monthly chart, reinforcing the prevailing bearish structure as the index continues to trade below its 10-DEMA while maintaining a sequence of lower highs.

Momentum indicators remain fragile, with the RSI slipping below 30 on both the daily and weekly time frames, signaling strong downside momentum despite oversold conditions.

From a broader perspective, the weekly chart indicates a decisive breakdown from recent consolidation ranges, while the monthly structure reflects a sharp rejection from higher levels, suggesting a gradual deterioration in the medium-term trend. On the hourly timeframe, the index continues to trade well below its short-term moving averages, confirming persistent intraday weakness and indicating that rebounds may encounter supply at higher levels.

In the derivatives segment, the Put–Call Ratio (PCR) near 0.76 reflects a cautious undertone, with notable call writing around the 54,500 strike, while put writers continue to defend the 54,000 level, marking it as an important near-term support and the market’s immediate battleground. Unless the index reclaims the 54,650 resistance, any recovery is likely to be viewed as a sell-on-rise opportunity, whereas a decisive break below 53,500 could accelerate the decline toward the 53,000 region.

Technical Analysis Report

Nifty drifts lower amid rising volatility and weak market breadth

Om Mehra, Technical Research Analyst, SAMCO Securities

Nifty ended the session at 23,151.10, down 2.06%, extending the ongoing weakness and closing near the lower end of the day’s range. Market breadth remained weak, with most sectors ending in negative territory.

On the daily chart, Nifty has formed a bearish candlestick pattern, indicating a weak outlook following the recent breakdown. The index is now trading near the lower Donchian channel.

The MACD has moved deeper into negative territory, with the histogram continuing to expand on the downside. The daily RSI has slipped near the 25 level, while the weekly RSI remains around 31.

India VIX surged 5.70% to settle at 22.74, signalling elevated nervousness in the market and the likelihood of wider price swings in the near term.

For the week, Nifty declined 5.31%, marking one of the sharpest weekly falls in recent years.

Nifty is currently filling the gap formed in July 2025, which could lead to a move toward 22,920. A move below this level could push the index toward 22,800. On the upside, 23,400–23,600 is likely to act as the resistance zone.

Meanwhile, USD–INR slipped to a historic low of 92.47. The near-term outlook remains weak; however, a sharp intraday rebound cannot be ruled out.

Nifty Bank ended the session at 53,757.85, declining 1,343 points or 2.44%, as the index extended its recent weakness and closed sharply lower. The decline reflects continued pressure across banking stocks, with both Nifty Private Bank and Nifty PSU Bank indices remaining in a declining phase.

On the daily chart, Nifty Bank has formed a strong bearish candle, indicating persistent selling pressure following the recent breakdown from the earlier range. The index is now hovering near the 53,500–53,400 zone, which earlier acted as a key support level and is currently being tested again. A decisive move below this level may open the door for further downside.

The index continues to trade below its key moving averages, reflecting weakness in the broader trend. The RSI has slipped near the 23 level, indicating that the index has entered a deeply oversold zone.

For the week, Nifty Bank declined 6.97%, marking one of the sharpest weekly falls and indicating continued selling pressure across the banking space.

Overall, the short-term outlook remains weak, and the index may continue to witness volatile swings unless it manages to reclaim the 54,500 zone on a closing basis.