Bank Nifty August Futures (51,173)
Bank Nifty index has been volatile today since the opening. The index fell to a low of 50,938 and then has bounced back recovering almost all the loss. It is currently trading at 51,140, down 0.02 per cent.
The advances/declines ratio is a 6:6. This indicates indecisiveness in the market.
Bank Nifty outlook
The Bank Nifty index has support at 50,900. As long as it stays above this support, a rise to 51,400-51,450 is possible in the near-term.
The region around 51,450 is a strong resistance. So, the price action around 51,450 will need a close watch. Failure to breach 51,450 can drag the Bank Nifty index down tom 51,200-51,000 again.
- Also read: Soft opening seen for Nifty, Sensex
The outlook will turn bearish only if the Bank Nifty index declines below 50,900. If that happens, a fall to 50,300 can be seen.
For now, 50,900-51,450 will be the range within which we can expect the Bank Nifty index can oscillate.
Bank Nifty futures
The Bank Nifty August Futures (51,173) is down 0.12 per cent as of now. The contract fell to a low of 50,931.50 and then has risen back from there.
Support is in the 50,930-50,900 region which is holding well for now. Intermediate resistance is at 51,300. A strong break above it can take the Bank Nifty Futures contract up to 51,550.
The near-term picture will turn negative only if the contract declines below 50,900. In that case, a fall to 50,500-50,400 can be seen.
For now, 50,900 to 51,550 can be the trading range for some time. The contract can go either way from current levels within the range during the day.
Trade strategy
Since the contract is likely to be range bounce, we suggest traders to stay out on the market.
Supports: 50,900, 50,500
Resistances: 51,300, 51,550