Markets Pause at Resistance: Nifty Breaks Range, Bank Nifty Lags

Good morning, traders,

Nifty closed at 24461 (up 0.47%), while Bank Nifty slipped to 54917 (down 0.36%).
The day reflected mixed sentiment — with Nifty showing an upward breakout but ending the day with a Doji candle, and Bank Nifty continuing its weak streak.

Nifty Analysis

In our 05 May analysis, we discussed Nifty’s rangebound behavior between 24000–24450. On 05 May, Nifty broke above this zone, indicating a technical bullish breakout.
However, the Doji candle formed on the daily chart reflects uncertainty, and the lack of strong follow-through raises questions about conviction.

OI & PCR:

Image from Sensibull

• PCR: 0.74 around ATM, 0.8 overall → Neutral

• OI in Nifty Futures: Up by 0.86% → Long Buildup

Key Levels:

• Support: 24200

• Resistance: 24500

Market View: Neutral to Slightly Bullish – The breakout above the range is technically positive, but the weak candle suggests caution. Traders may choose to go light or wait for follow-through confirmation.

Bank Nifty Analysis

Bank Nifty underperformed and closed lower despite broader market stability. It formed another Doji candle, a second consecutive signal of indecision.
The drop in open interest indicates a lack of confidence among bulls.

OI

• OI in Bank Nifty Futures: Down by 3.4% → Long Unwinding

Key Levels:

• Support: 54500

• Resistance: 56000

Market View: Neutral - Bank Nifty remains in a weak phase unless a fresh round of long positions emerges. Avoid aggressive longs until structure improves.

Final Word

Mixed signals in the market make this a stock-specific environment. Nifty shows signs of strength, but conviction is missing. Bank Nifty continues to drag.
Let’s see what happens in the market today.