Nifty Bank Recovery Meets Resistance; 55,000–56,000 Range in Focus
Dhupesh Dhameja,
Derivatives Research Analyst,
SAMCO Securities
Mumbai, March 18, 2026: Nifty index witnessed a follow-through buying session and closed at 23,777.80, up 196.65 points (+0.83%), but continues to struggle near the resistance zone of 23,850–23,900, which coincides with its 10-DEMA, indicating hesitation at higher levels. Despite the recovery, the index needs to sustain above 23,860 (day’s high) to trigger further short covering, while 23,500 now acts as a crucial support, a break below which could drag the index toward 23,000.
Structurally, the index is attempting to improve but still carries a cautious undertone as momentum remains moderate, with RSI rebounding from oversold levels but yet to cross 40. Meanwhile, India VIX has cooled off toward 18.7, suggesting temporary relief, but volatility may persist amid global uncertainties.
On the hourly chart, the index is trading above its 10-EMA and 20-EMA, reflecting short-term strength, though supply is visible near higher levels.
In the derivatives space, PCR stands near 1.06, indicating a balanced sentiment; however, strong call writing at 24,000 continues to cap the upside, while put writers have shifted toward 23,500, defining the immediate support. This positioning suggests a well-defined range of 23,500–24,000, and with expiry approaching, a decisive breakout beyond this band could lead to a sharp directional move. Until then, range-bound trading with a slight positive bias is likely, where dips may continue to attract buying interest.
Nifty Bank Recovery Meets Resistance; 55,000–56,000 Range in Focus
Nifty Bank extended its follow-through recovery and closed at 55,326.05, up 450.05 points (+0.82%), but continues to face resistance near the 55,500 zone, while the 10-DEMA positioned at 55,900–56,000 is emerging as a strong overhead supply zone, likely to cap further upside unless decisively breached. Despite reclaiming 55,000, the index needs to sustain above 55,500 to trigger further short covering, while 55,000–54,800 now acts as a crucial support zone; a break below this could drag the index toward 54,200.
Structurally, the index is improving but still maintains a cautious tone with a lower-high formation intact, suggesting resumption of supply when market rallies.
Momentum is stabilizing with RSI rebounding from oversold levels, indicating early recovery signs.
On the hourly chart, the index is trading above its 10-EMA and 20-EMA, reflecting short-term strength, though upside momentum is facing resistance near supply zones.
In derivatives, PCR near 0.89 reflects a balanced undertone, with strong call writing at 56,000 capping the upside, while put writers have shifted toward 55,000, marking it as a key support. This positioning suggests a well-defined range of 55,000–56,000 for the near term.
With volatility still elevated amid global uncertainties, range-bound trading with a slight positive bias is likely, where dips may continue to attract buying interest unless 55,000 is decisively breached.
Technical Analysis Report
Nifty extends relief rally for third session as volatility eases
Om Mehra,
Technical Research Analyst,
SAMCO Securities
Nifty ended the session at 23,777.80, gaining 0.83%, extending the relief rally for the third consecutive session after the recent sharp decline. The index has now witnessed a steady recovery from the recent low.
On the daily chart, Nifty has formed a positive candle. The index is currently trading above the 0.236 Fibonacci retracement level placed near 23,750, indicating a gradual improvement in the near-term setup. It is also hovering around the 10 EMA, suggesting that immediate momentum is attempting to stabilise after the recent breakdown. However, the index continues to trade below the middle Bollinger Band.
The RSI has moved higher and is now placed near 37, indicating a recovery from lower levels. The MACD remains in negative territory, but the histogram is contracting.
India VIX declined 5.39% to 18.72, reflecting further cooling in volatility, which has supported the ongoing recovery in the index.
As long as Nifty sustains above 23,450 on a closing basis, the buy-on-dip strategy may remain favourable in the near term, with potential upside toward 23,900–24,050. On the downside, a break below 23,450 may weaken the recovery and bring back selling pressure.
Nifty Bank closed at 55,326.05, up 0.82%, continuing the rebound after the recent sharp decline. The index has gradually moved higher, indicating that selling pressure has eased in the near term.
The current recovery is bringing prices back above the 23.6% Fibonacci retracement level placed near 55,240. The Bollinger Band indicates the index is recovering from the lower band and moving back within the band range. However, it continues to trade below the mid-band.
After slipping into oversold territory recently, the RSI has moved up toward 35, indicating a gradual recovery in strength.
On the hourly chart, the index is showing continuity of the short-term trend, with the recovery likely to continue as long as 54,750 is protected on a closing basis.
On the downside, a break below 54,750 may weaken the ongoing recovery and bring back pressure.
Overall, the current move reflects a short-term recovery, while the broader trend remains corrective.
