The Nifty Bank index ended Thursday’s session with a modest gain of 0.15%, closing at 55,760.85. While the uptick was marginal, the session’s technical takeaway is more telling: the index formed a second consecutive Doji candlestick on the daily chart. This pattern, marked by small wicks and a near-equal open and close, signals growing indecision among traders. After a strong run in previous sessions, this pause in momentum suggests that the market is at a critical juncture, consolidating near resistance before its next major move.
For the past six weeks, the Nifty Bank has been oscillating within a tight consolidation band between 53,500 and 56,000. It has repeatedly tested the upper boundary of this range but has yet to convincingly break above it. The 56,000 to 56,100 zone remains a significant resistance area. A decisive close above this range, especially with higher volumes, would likely trigger a fresh bullish breakout, setting the stage for a potential rally towards the 56,800 to 57,200 levels.
On the downside, immediate support is situated between 55,600 and 55,500. A breach below this range could undermine the ongoing bullish setup and expose the index to further downside pressure. If the weakness persists, the next major support lies in the 54,000 to 53,500 zone—an area that coincides with the 50-day Exponential Moving Average and key Fibonacci retracement levels, making it a robust demand zone for short-term buyers.
Momentum indicators support a cautiously optimistic stance. The Relative Strength Index (RSI) is currently at 60.47, indicating mild bullish momentum. While not in overbought territory, the index is showing signs of fatigue near its upper resistance, implying the bulls may need a strong catalyst to push through.
