Nifty surges past 8-session high
Dhupesh Dhameja,
Derivatives Research Analyst,
SAMCO Securities
Mumbai, 12 June 2026: Nifty witnessed a powerful resurgence and closed at 23,622.90, up 461.30 points (+1.99%), marking one of the strongest single-session recoveries in recent weeks.
Derivatives Analysis Report
Nifty surges past 8-session high; reclaim of 20-DEMA strengthens bullish outlook
The rally carries significant technical importance as the index decisively reclaimed the 23,500 psychological mark, closed back above its 20-DEMA, and surpassed the highs of the previous eight trading sessions, indicating a clear shift in short-term market sentiment. The weekly chart has also turned encouraging, forming a Bullish Piercing candlestick pattern, often considered an early indication of trend reversal after a corrective phase. The strong rebound from lower levels highlights renewed buying interest and suggests that the recent decline may have exhausted selling pressure.
Adding to the positive structure, the daily RSI has surged to 51.25, moving above the neutral 50 mark and confirming a revival in momentum.
From a derivatives standpoint, the options data reflects a notable improvement in market positioning. Significant put open interest accumulation at 23,500, 23,400, and 23,300 strikes has established a strong support base, while substantial call open interest at 24,000 and 24,500 strikes marks the next resistance zone. The PCR has improved sharply to 1.34, indicating aggressive put writing and a clear improvement in trader sentiment. Meanwhile, India VIX declined 6.78% to 14.72, signaling easing volatility expectations and strengthening confidence among market participants.
For the upcoming sessions, 23,500 now becomes the immediate support and pivot level. As long as the index sustains above this zone, the breakout structure remains intact and the recovery could extend towards 23,800–24,000. The combination of a bullish weekly reversal pattern, reclaiming the 20-DEMA, improving momentum, strong put writing, and a sharp decline in volatility suggests that the market bias has turned constructive. A buy-on-dips strategy remains favorable while the index holds above 23,500.
Nifty Bank surges to six-week high; reclaim of 200-DEMA signals fresh bullish momentum
Nifty Bank delivered a powerful bullish breakout and closed at 56,814.80, up 1,638.05 points (+2.97%), reflecting strong institutional participation and broad-based strength across the banking space. The index not only reclaimed the crucial 56,000 psychological mark but also decisively moved above its 200-DEMA, a development that significantly strengthens the medium-term technical outlook. More importantly, Nifty Bank registered its highest close in the last six weeks, signaling a clear shift in market leadership toward the banking sector. The daily chart indicates a decisive breakout above the recent consolidation range, accompanied by strong price expansion and improving volumes. On the weekly timeframe, the index formed a robust Bullish Marubozu candlestick, highlighting aggressive buying throughout the week with minimal signs of profit booking.
The breakout above the 200-DEMA and key resistance zone near 56,400–56,500 suggests that the recent consolidation phase may have concluded, paving the way for a fresh leg of the uptrend.
Momentum indicators have turned increasingly supportive, with the RSI strengthening sharply and sustaining above the 60 zone, reflecting improving participation and strengthening bullish momentum.
From a derivatives perspective, the setup remains constructive. Significant put open interest accumulation at 56,000 and 55,500 strikes indicates strong support creation at lower levels, while notable call open interest at 57,000 and 58,000 strikes marks the immediate resistance zone. The overall PCR has improved to 1.09, suggesting that broader positioning continues to favor the bullish camp.
For the coming sessions, 56,400–56,000 now becomes a crucial support zone. As long as the index sustains above this region and the 200-DEMA, the breakout structure remains intact and could extend toward 57,500–58,000. The combination of a bullish weekly Marubozu, reclaiming the 200-DEMA, a six-week closing high, and strong option support suggests that Nifty Bank remains one of the strongest segments of the market. A buy-on-dips strategy continues to remain favorable while the index holds above 56,000.
Technical Analysis Report
Nifty Reclaims 20-Day SMA, Breaks Above Descending Channel on Weekly Gain
Om Mehra, Technical Research Analyst, SAMCO Securities
Nifty ended the session at 23,622.90, up 1.99%, forming a strong bullish candle on the daily chart and closing above the 20-day SMA. The index has also broken above the upper boundary of the descending channel that had been capping prices since mid-April. On the weekly chart, the current week's candle is shaping up to be a strong bullish candle, with a 1.10% gain and a close near the upper end of the range.
The RSI on the daily chart has crossed above the midpoint, reflecting a shift in momentum after an extended period of weakness. The MACD is on the verge of a positive crossover.
The 23,800–23,950 zone is likely to act as the immediate resistance band on the daily chart.
On the downside, the 23,400–23,350 zone has now turned into a key support area. As long as the index holds above this zone on a closing basis, the short-term outlook remains neutral to bullish.
Nifty Bank ended the session at 56,814.80, up 2.97%, forming a strong bullish candle on the daily chart with a runaway gap opening at 55,934.10 that remained unfilled throughout the session. The index registered a weekly gain of 4.25%, marking its strongest weekly performance in several months, and closed near the upper end of the week's range.
The index is currently trading above its 20-day and 50-day SMAs, though it remains below the 200-day SMA, which is placed near the psychologically important 57,000 level.
The RSI has surged to 65, reflecting a sharp improvement in momentum. The MACD has crossed above the zero line, with the histogram expanding positively.
A sustained close above 57,000 would open the door for a move toward the 57,500–57,800 zone.
On the downside, 56,400, followed by 56,200, has now emerged as a key support area.
