Nifty: Strong Base Formation Emerges Near 23,300 Level
Dhupesh Dhameja,
Derivatives Research Analyst,
SAMCO Securities
The Nifty index witnessed a highly range-bound session and managed to close marginally higher by 10.95 points (+0.05%) at 23,416.55.
Derivatives Analysis Report
Nifty holds firm above key support
Despite intraday volatility, the index continued to hold above the crucial 23,300–23,250 support zone, indicating that buyers are actively defending lower levels and helping the index build a strong base near it.
Technically, the index remained below its 20-DEMA, placed near 23,680, suggesting that the broader short-term trend remains cautious. However, the repeated defence of the 23,250–23,300 zone highlights the formation of a strong demand area. The daily chart reflects consolidation after recent weakness, with the market attempting to establish a base before its next directional move.
The momentum indicator RSI remained near the 41 mark, reflecting subdued momentum but also indicating that selling pressure has eased considerably from recent sessions. The inability of bears to push the index decisively below support despite multiple attempts suggests exhaustion on the downside.
From a derivatives perspective, the options data points to a well-defined trading range. Significant put open interest accumulation is visible at 23,300 and 23,000 strikes, reinforcing the support base. On the upside, heavy call open interest is concentrated at 23,500 and 24,000 strikes, which continues to cap any meaningful recovery. The PCR stands at 0.95, indicating improving support from put writers and a relatively balanced derivatives setup. Additionally, the maximum pain level is placed near 23,450, suggesting expiry-related gravitation toward this zone.
Meanwhile, India VIX declined 2.41% to 15.88, reflecting cooling volatility expectations and supporting the ongoing consolidation phase. For the upcoming session, 23,300–23,250 remains the immediate support zone and a crucial base for the index. As long as Nifty sustains above this area, a pullback toward 23,500–23,700 cannot be ruled out. However, a decisive move above the 20-DEMA near 23,680 is required to trigger stronger buying momentum. On the downside, a breakdown below 23,250 could once again expose the index to selling pressure toward 23,116.
Nifty Bank posts third straight higher close
Nifty Bank index extended its recovery for the third consecutive session, closing 121.90 points higher (+0.22%) at 54,307.85. The index witnessed a volatile start but continued to attract buying interest at lower levels, resulting in another higher close and reinforcing the ongoing short-term recovery.
Technically, the index has now registered three consecutive higher closings, indicating gradual improvement in sentiment. More importantly, it managed to reclaim and sustain above the crucial 54,300 resistance zone, which had acted as an immediate hurdle in recent sessions. The index is currently trading near its 20-DEMA (54,320), making this zone a critical battleground for bulls and bears. A decisive close above this level could trigger fresh buying momentum.
The momentum indicator RSI, has improved to around 47, reflecting strengthening price momentum and suggesting that buyers are gradually regaining control. The formation of higher closes after a prolonged decline indicates accumulation at lower levels and improves the near-term structure of the index.
From the derivatives perspective, the options data continues to indicate a well-defined trading range. Significant put open interest is concentrated at 54,000 and 53,500 strikes, highlighting strong support at lower levels. On the upside, substantial call open interest at 55,000 and 54,500 strikes continues to act as an immediate resistance zone. The PCR stands at 0.92, reflecting a balanced-to-cautious sentiment, while the maximum pain level remains at 55,000, suggesting expiry-related pull toward higher levels if the index sustains its recovery.
For the upcoming session, 54,000–53,500 remains the key support zone. As long as the index holds above these levels, the recovery can extend toward 54,900–55,000. A decisive breakout above 55,000 could further strengthen bullish momentum. However, failure to sustain above the 20-DEMA may keep the index range-bound in the near term.
Technical Research Analyst
Nifty holds ground near the lower Bollinger
Band; sideways consolidation is likely
Om Mehra, Technical Research Analyst, SAMCO Securities
Nifty ended the session at 23,416.55, marginally up by a 0.05%, forming a faint small-bodied green candle on the daily chart. The index traded within a narrow range throughout the session, reflecting consolidation following the recent decline. Nifty is currently hovering near the lower Bollinger Band. The Moving Average Ribbon remains overhead, keeping the broader market structure under pressure.
On the hourly chart, the index has stabilized in the 23,350–23,500 zone over the past two sessions and appears to be forming a base. The daily RSI is positioned near 42, still below the 50 midpoint. The MACD remains in negative territory, although the histogram is narrowing marginally.
The 23,600–23,680 zone will act as a key resistance area on any pullback, and a sustained close above this band would be required to signal a shift toward the upside. On the downside, the 23,250–23,200 zone remains the immediate support . In the near term, range-bound oscillation appears to be the most likely scenario.
Nifty Bank ended the session at 54,307.85, up 0.22%, forming a small green candle on the daily chart. The index has been oscillating within the broader 53,400–54,600 range over the past few sessions, reflecting an ongoing consolidation phase.
The 20-day SMA, placed near 54,200, has provided support, and the index managed a marginal close above it. However, this move needs to be sustained over the next few sessions to strengthen the bullish case.
The RSI is placed near 49, while the positive divergence observed over the past few days may act as a catalyst for further upside. The MACD remains in positive territory, indicating underlying strength.
The 54,650–55,000 zone is expected to act as the immediate resistance zone. On the downside, 54,100 remains the first support level, followed by 53,800. The near-term setup favours a range-bound move with a cautious positive bias. However, a sustained move above 54,600 will be important to improve the prospects of an upward breakout.
