Dhupesh Dhameja, 

Derivatives Research Analyst, 

SAMCO Securities

Mumbai, 14 May 2026:: Nifty index witnessed a volatile session and staged a strong recovery from lower levels, closing higher by 1.18%, indicating active buying interest emerging near crucial support zones. 

Derivatives Analysis Report

Nifty witnesses sharp intraday rebound

On the daily chart, the index defended the 23,350–23,400 support region after witnessing sharp intraday selling pressure, highlighting that buyers continue to accumulate positions near lower levels. However, the index still remains below the key 0.382 Fibonacci retracement level placed near 23,770 and its 10-DEMA near 23,830, suggesting that the broader short-term structure continues to remain under corrective pressure.

Technically, the formation of a strong recovery candle near the support base reflects healthy absorption rather than panic unwinding, which is often considered an early sign of stabilization after a sharp decline. The index has been respecting the broader higher-low structure from the recent swing bottom, indicating that the ongoing correction still appears to be a pullback within a broader recovery phase rather than a complete trend reversal. The inability to reclaim the immediate resistance zone near 23,770–23,850 suggests that sellers are still active on pullback rallies, keeping the market within a volatile trading band.

Momentum indicator RSI recovered from lower levels and is currently hovering near 46, reflecting easing bearish momentum and gradual improvement in participation from the buying side, although it still trades below the neutral 50 mark. Meanwhile, India VIX remained elevated near 18.6, indicating volatility is still high and traders should expect sharp two-sided moves in the near term.

From a derivatives perspective, option data suggests aggressive call writing near 23,800–24,000 levels, which is capping immediate upside momentum, while meaningful Put writing near 23,500–23,300 is providing a strong support cushion on declines.

The overall setup indicates that the market is currently in a phase of consolidation with heightened volatility after recent corrective pressure. As long as the index sustains above 23,350, recovery-based buy-on-dips strategy may continue to remain favorable for pullback targets towards 23,770–24,000. However, a decisive breakdown below 23,350 could trigger fresh weakness towards the lower gap support area near 23,150.

Nifty Bank rebounds sharply from support

Nifty Bank index witnessed a strong recovery from lower levels and closed higher by 1.26%, indicating selective buying interest emerging near crucial support zones after recent sharp correction. On the daily chart, the index formed a pullback recovery candle after witnessing a breakdown below the recent consolidation range; however, the ongoing rebound appears to be a breakdown retest near the previously breached support zone of 54,400–54,500, which is now acting as an immediate resistance hurdle. The index continues to trade below its 10-DEMA placed near 54,620, highlighting that the short-term structure still remains under pressure despite the recovery attempt.

Technically, the index has been forming lower-high formations on the daily chart, indicating that sellers continue to dominate on every pullback rise and upside momentum remains restricted near resistance zones. The broader structure suggests that the current rebound is more of a technical pullback rather than a strong trend reversal, as the index is still struggling to reclaim key retracement levels.

Momentum indicator RSI recovered from lower levels and is hovering near 44, reflecting easing of bearish momentum but the RSI still remaining below the neutral zone, which indicates limited strength in the ongoing recovery phase.

From a derivatives perspective, PCR stands near 0.79, indicating cautious undertone with volatility-driven positioning in the banking space. Option data shows aggressive call writing around 54,500–55,000 levels, capping immediate upside momentum, while steady put writing near 53,500–53,000 is providing a support cushion on declines.

The overall setup suggests that the index may continue to witness volatile range-bound movement with stock-specific action dominating the banking space. As long as the index sustains above 53,500, buy-on-dips strategy near support zones may remain favorable for a pullback recovery towards 54,500–55,000, while a decisive breakdown below 53,500 could again trigger weakness towards 53,000 levels.

Technical Analysis Report

Nifty Bounces off Lower Bollinger Band as VIX Declines

Om Mehra, Technical Research Analyst, SAMCO Securities

Nifty staged a decisive recovery, gaining 277 points to close at 23,689.60, up 1.18%. The daily chart formed a bullish candle, closing above the previous session’s high and adding strength to the recovery.

The bounce from the lower Bollinger Band is structurally significant, as such moves often mark the beginning of a mean-reversion phase toward the middle band.

Nifty has reclaimed the 1.23 Fibonacci extension at 23,500 and closed above the 1.38 extension, indicating that the recovery has gained traction beyond just a short-covering bounce.

However, the index continues to trade below the short-term moving averages.

The RSI has improved to 46, recovering from the sub 40 zone.

India VIX declined 4.18% to settle at 18.61, easing after the recent spike. A further decline in VIX below 18 would support a more stable recovery.

On the downside, the 23,500–23,450 zone remains the immediate support area. On the upside, the 23,920–24,000 zone is likely to act as the resistance.

Nifty is currently placed with a neutral-to-slightly positive outlook.

Nifty Bank staged a sharp recovery after a stretched decline, gaining 672.80 points to close at 54,128.95, up 1.26%. The index tested the lower Bollinger Band placed at 53,350 and reversed from that zone. The index formed a bullish candle on the daily chart.

On the hourly chart, a double bottom formation is visible. However, the 54,400–54,300 zone also coincides with the prior support-turned-resistance band on the daily chart. A sustained move above this neckline would confirm the pattern and open room for further upside extension.

The RSI has improved to 44, recovering from below 39. Nonetheless, Nifty Bank continues to trade well below the middle Bollinger Band.

On the downside, the 53,700–53,500 zone remains the immediate support area. On the upside, the 54,500–54,700 zone is likely to act as resistance.

The near-term outlook has turned neutral to slightly positive.