Dhupesh Dhameja, 

Derivatives Research Analyst, 

SAMCO Securities

Mumbai, March 17, 2026: Nifty index witnessed a follow-through buying session and closed at 23,581.15, up 172.35 points (+0.74%), signaling early stabilization after the recent decline, with an immediate base formed near the gap support zone of 23,000–22,900. 

Nifty shows follow-through buying; 23,500 turns key support for bulls

The index has now closed above 23,500, indicating initial recovery, though it still trades below its 10-DEMA while maintaining a cautious structure. Immediate support has shifted higher to 23,300–23,500, and a sustained move above 23,650 could trigger further short covering toward 23,800–24,000, while a failure to hold 23,300 may drag it back toward 23,000–22,900.

Momentum is improving as RSI rebounds from oversold levels (still below 40), while India VIX cooling near 19 suggests easing volatility. On the hourly chart, the index has moved above its 10-EMA and 20-EMA, supporting short-term strength.

In derivatives segment, PCR near 0.99 reflects a balanced undertone, with strong call writing at 24,000 and Put writers shifting to 23,500, indicating a near-term range of 23,500–24,000; until a breakout, the market may remain range-bound with a slight positive bias where dips attract buying.

Nifty Bank stabilizes near support, traders watch 55,000 breakout

Nifty Bank witnessed a follow-through buying session and closed at 54,876.00, up 462.60 points (+0.85%), forming a bullish hammer near the key support zone of 53,500–53,300, indicating a potential near-term base. The index is now approaching the 55,000 resistance, though it continues to trade below its 10-DEMA while maintaining a cautious structure. Immediate support has shifted higher to 54,000, and a sustained move above 54,996 could trigger short covering toward 55,500–55,800, while failure to hold 54,000 may drag it back toward 53,500–53,300.

Momentum is improving with RSI rebounding from oversold levels (still below 40), while on the hourly chart the index has moved above its 10-EMA and 20-EMA, indicating short-term strength.

In derivatives segment, PCR near 0.78 reflects a cautions undertone, with strong call writing at 55,000 and put writers shifting to 54,000, suggesting a near-term range of 54,000–55,000; until a breakout materializes beyond this range, the index may remain confided with a slight positive bias where dips are likely to be bought.

Technical Analysis Report

Om Mehra, Technical Research Analyst, SAMCO Securities

Nifty rebounds as volatility cools, but key resistance continues to cap the upside

Nifty ended the session at 23,581.15, gaining 0.74%, extending the recovery for the second consecutive session after the recent sharp decline.

On the daily chart, Nifty has formed a bullish candle, indicating continuation of the ongoing pullback after the recent sell-off. The index is currently trading near the 0.236 Fibonacci level placed around 23,750, which may act as an immediate resistance zone. The broader trend remains under pressure, as the index continues to trade below its key moving averages, indicating that the recent up move is more of a recovery within a declining phase rather than a confirmed trend reversal.

The RSI has moved up from deeply oversold levels and is now placed near 33, indicating some improvement in momentum. On the hourly chart, a bullish divergence is visible, which supported the recent rebound.

India VIX declined 8.39% to 19.79, indicating a cooling in volatility after the recent spike, which has supported the short-term recovery in the index.

Sustaining above 23,700 on a closing basis will be important for extending the recovery toward the 23,900–24,000 zone. On the downside, 23,200 remains a key support level, and a break below this may resume the downward trend.

Nifty Bank ended the session at 54,876, gaining 0.85%, showing a mild recovery after the recent sharp decline.

The index has formed a bullish candle after a sequence of declines, indicating a short-term pullback. However, the broader setup continues to remain weak, as Nifty Bank is still trading well below its short-term moving averages.

The RSI is placed near 31 and has shown a slight uptick from deeply oversold levels, indicating some easing in downside momentum. However, it continues to remain in the lower range, suggesting that strength is still limited.

Nifty Private Bank and Nifty PSU Bank indices, despite showing only marginal gains, indicate that the short-term recovery may persist in the coming session.

Going ahead, sustaining above 54,200 on a closing basis will be important for extending the recovery toward 55,500–56,000. The current move appears to be a short-term pullback within a broader declining trend.