Bank Nifty December Futures (52,830)

Nifty Bank index is gaining strength. Indeed, on the chart it is looking relatively much better that the Nifty 50 index. The Nifty Bank index is trading at 52,604, up 0.95 per cent. The advances/declines ratio is at 10:2. This is positive.

Bank Nifty outlook

The index is getting strong support around 51,700. The strong rise above 52,200 is a positive. Immediate support will be around 52,500. If the index manages to sustain above this support, a rise to 53,000 and higher levels can be seen in the coming sessions.

In case the index dips below 52,500 it can fall to 52,000 during the day.

Bank Nifty Futures

The Bank Nifty December Futures (52,830) is up 0.8 per cent. The contract has strong support at 52,700. Outlook is bullish to see a rise to 53,500 in the coming sessions.

The contract will come under pressure for a fall to 52,500 only if it breaks below 52,700.

Trade Strategy

Traders can go long now at 52,830. Accumulate on dips at 52,760. Keep the stop-loss at 52,640 initially. Trail the stop-loss up to 52,850 as soon as the contract moves up to 52,980. Move the stop-loss further up to 53,100 when the contract touches 53,250. Exit the long positions at 53,400.

Traders can consider this as a positional trade and hold it for this week.

Supports: 52,700, 52,500

Resistances: 53,000,53,500

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