Short term - Technical Outlook
Bank Nifty closed near 59,578, holding above key supports despite relative underperformance compared to the broader market. The index is currently testing its 20-day EMA around 59,491, while the 50-day EMA near 58,931 continues to offer medium-term support, suggesting cautious but stable price action. Immediate support lies in the 59,200–59,000 range, while resistance is placed at 59,700–59,900. The psychological 60,000 level remains a major breakout trigger; a sustained move above this zone would signal renewed bullish momentum in banking stocks. Until then, range-bound trade with a neutral to mildly positive bias is likely, with banking sector performance remaining pivotal for overall market direction.
 

Short term Research Report Call
Buy Above: 59600 | Targets: 59680, 59770, 59850 | Stop-loss: 59500
Sell Below: 59400 | Targets: 59330, 59230, 59140 | Stop-loss: 59500
 

Short term Chart

Long term - Technical Outlook

Bank Nifty took support from the lower levels and is now attempting to make new highs. Holding above 59,800 could provide additional support to Bank Nifty. Technically, staying above 59,500 will help maintain a positive sentiment for the Indian market. However, a break below 59,000 could turn unfavorable for Bank Nifty and trigger weakness.

Long term Research Report Call
Buy Above: 59800 | Targets: 59890, 59970, 60070 | Stop-loss: 59700
Sell Below: 59600 | Targets: 59520, 59400, 59320 | Stop-loss: 59800
 

Long term Chart

NIFTY 50

Nifty 50 is trading around the 25,700 zone, attempting a mild recovery after recent volatility. The index remains in a consolidation phase with a neutral to mildly bullish bias as long as it holds above the key 25,600–25,700 support zone, which coincides with the 100-day EMA and a recent demand area. On the upside, resistance is placed at 25,800–25,900, and only a decisive move above 26,000 would shift sentiment more positively toward the 26,200+ zone. Until then, overhead supply and option-led resistance may restrict sharp rallies.

Option data for the weekly expiry on January 20, 2026 shows call-writing dominance, with cumulative Call OI around 12 crore contracts versus Put OI near 10.24 crore, resulting in a PCR of approximately 0.85. Heavy call OI build-up at 25,700, 25,750, and 25,800 indicates strong resistance at higher levels, while notable put writing at 25,000, followed by 25,100 and 25,200, provides a downside cushion. This structure suggests bulls retain an edge as long as the index sustains above 25,700, though rallies may remain capped without fresh buying momentum.

Bank Nifty

Bank Nifty continues to show relative resilience, trading near the 59,500–59,600 zone with a gradually improving structure. The index is holding above short-term averages, indicating underlying strength in the banking space despite broader market caution. Immediate support lies at 59,300–59,200, with a deeper cushion near 59,000–58,800, while resistance is placed at 59,700–59,800 and the psychological 60,000 level. The outlook remains neutral to mildly positive, with range-bound trade likely between 59,300 and 59,800 unless supported by broader market strength or sector-specific rotation.