Bank Nifty September Futures (51,743)

Bank Nifty index is down about 0.1 per cent for the day now. The index opened with a gap-up at a high of 51,952 and then has come down from there. It is currently trading at 51,711. The advances/declines ratio is at 8:4. This leaves the bias positive.

Bank Nifty outlook

Immediate support is around 51,630. Below that strong support is in the broad 51,350-51,250 region. A break below 51,630 can drag the index down to 51,350-51,250 during the day. But a fall beyond 51,250 is unlikely at the moment.

 Resistance is around 51,900. As strong break above this resistance is needed to gain bullish momentum. Only then a rise to 52,200 and 52,400 will come into the picture.

Bank Nifty Futures

The Bank Nifty September Futures contract (51,743) is trading flat. The contract has come down after spiking to a high of 51,944 at the opening trades.

Immediate support is in the 51,680-51,650 region. A break below 51,650 can take the contract down to 51,500 – the next strong support. A fall beyond 51,500 is less likely.

We expect the Bank Nifty Futures contract to bounce either from around 51,650 itself or from around 51,500 and rise to 51,200 in the coming days.

Trade Strategy

Positional trades can be considered at the moment for a holding period of one week. Go long at 51,690 and 51,560. Keep the stop-loss at 51,420. Trail the stop-loss up to 51,850 as soon as the contract moves up to 51,980. Move the stop-loss further up to 51,960 when the contract touches 52,050. Exit the long positions at 52,180.

Traders who do not want to hold/carry the trade for the weekend can avoid this trade.

Support: 51,650, 51,500

Resistances: 51,950, 52,250

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