Market Reality Check: Nifty’s Doji Breakout Fails, Bank Nifty Hit by Heavy Selling

Good morning, all

Nifty closed at 24371, down 0.37%
Bank Nifty closed at 54265, down 1.18%

The market saw a reversal after yesterday’s unconvincing Doji breakout in Nifty, just as we anticipated in 06 May analysis. Bank Nifty continues to underperform with increasing selling pressure.

NIFTY ANALYSIS

Nifty failed to sustain above the 24450 level it breached on 06 May. The index closed lower, with early signs of weakness returning.

OI & PCR Data:

Image from Sensibull

• PCR: 0.65 around ATM, 0.8 overall → Neutral to Weak

• OI in Nifty Futures: Up by 0.28% → Short Buildup

Support: 24200

Resistance: 24400–24500

View: Neutral
Sellers are showing strong presence around 24400–24500. Without a convincing close above 24450, the bullish case remains weak.

BANK NIFTY ANALYSIS

Bank Nifty saw a sharp drop today, confirming the lack of follow-up buying after yesterday’s Doji. There’s growing weakness, and no signs yet of fresh long positions.

OI Data:

• OI in Bank Nifty Futures: Down by 5.06% → Long Unwinding

Support: 53800

Resistance: 55000

View: Neutral to Bearish
Heavy unwinding in futures and poor price action suggest staying cautious on long trades until some strength returns.

Let’s see what happens in the market today