Nifty Bank futures show promise for an upward rally on February 23, 2026, as analysts highlight key resistance levels and supportive technical patterns amid cautious market sentiment.

Banking Sector Eyes Upside Momentum Amid Range-Bound Trading

Indian stock markets are bracing for another session of volatility as the Nifty Bank index hovers near critical levels. On February 23, 2026, futures for Nifty Bank signal potential for a rally, with traders closely watching resistance around 61,500 to 61,600. A bullish candle on the daily chart, complete with a long upper shadow, points to underlying buying interest despite selling pressure at elevated prices. This formation suggests that buyers are stepping in to defend lower supports, keeping the short-term structure intact. Global cues, including Wall Street's slide and oil price fluctuations due to geopolitical tensions, are adding layers of caution, yet domestic banking stocks remain resilient. Public sector banks have outperformed private peers recently, contributing to the index's positive bias.

Analysts note that holding above immediate supports like 60,800 to 60,700 will be crucial for sustaining optimism. A breakdown below these zones could invite further selling, potentially dragging the index toward 60,000. On the flip side, a clean breakout over 61,600 might propel it to 62,200 and even 62,600, unlocking fresh momentum. High call writing at 61,500 indicates profit booking risks at that threshold, while put writing at 61,000 reinforces support strength. Overall, the index's higher high-higher low pattern on daily charts underscores a bullish trend, bolstered by rising trading volumes and key moving averages pointing upward.

Key Technical Levels and What They Mean for Traders

For Nifty Bank futures, the roadmap is clear: 61,000 serves as a pivotal support, with anything below risking a sharper correction. Resistance bands at 61,500-62,000 demand attention, where sustained moves could confirm a rally. Technical indicators like RSI holding steady and MACD above its signal line add to the constructive outlook, though fading histogram momentum hints at possible consolidation first. Pivot points place resistance at 61,457, 61,572, and 61,759, while supports lie at 61,084 down to 60,782. Fibonacci levels extend upside potential to 62,064, offering targets for aggressive bulls. Traders are advised to monitor these thresholds closely, as global uncertainties like U.S. tariff talks and Middle East tensions could sway sentiment swiftly. Dips toward support are seen as buying chances in this positive bias setup.

"A sustained breakout above 61,600 could unleash strong upside momentum toward 62,200, and further toward 62,600. On the flip side, immediate support lies in the 60,800–60,700 zone; holding above this zone will keep the short-term structure positive," said Sudeep Shah, Head of Technical and Derivatives Research at SBI Securities.

Broader Market Context and Investor Strategies

The Nifty Bank’s trajectory ties closely to the broader Nifty 50, which shows consolidation with a positive undertone after forming small bullish candles. Nifty faces hurdles at 25,800-25,850, with supports at 25,550-25,500. A breakout above 25,900 could target 26,000, aligning with Bank Nifty’s potential rally. Gift Nifty’s overnight dip reflects softer global risk appetite, but domestic resilience persists. PSU banks’ strength amid stock-specific moves keeps the banking pack afloat, even as private lenders lag. Investors should eye range-bound action between 60,000-61,750, using volatility for opportunities. Short-term traders might favor dips for entries, while positional players await confirmations beyond key resistances. Elevated options activity underscores these levels’ importance, with heavy writings signaling likely turning points.

Market participants remain vigilant on U.S.-Iran tensions pushing oil higher, alongside AI disruption fears and policy uncertainties. Yet, the Bank Nifty’s technical health—sustained above moving averages and positive momentum signals—fuels rally hopes. As February 23 trading unfolds, clarity on these levels will dictate the day’s direction. Strategies focusing on support defense and resistance tests could yield results in this setup.

In summary, Nifty Bank futures hold scope for a rally if key supports hold and resistances crack, backed by bullish patterns and resilient banking action, though global headwinds warrant caution.

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