Bank Nifty 50 July Futures (45,070)
Bank Nifty index is up 0.25 per cent. The index rose to a high of 45,184 and has come down from there. It is currently trading at 45,039. The advance: decline ratio at 6:6 indicates a mixed signal. Federal Bank, down 1 per cent is the worst-performing stock in the index.
Outlook
The immediate outlook is mixed. Support is at 44,850 and resistance at 45,250. The index can oscillate between this support and resistance. A breakout on either side of 44,850-45,250 will determine the next move. A break above 45,250 can take the index up to 45,450. On the other hand, a break below 44,850 can drag the index down to 44,600 and lower.
Bank Nifty Futures
The Bank Nifty July Futures (45,070) is up about 0.1 per cent. The contract has come down after testing a high of 45,250. Support for the contract is at 44,950. A break below it can trigger fresh selling. Such a break can take the Nifty Bank July Futures contract down to 44,600 in the coming sessions.
On the other hand, a strong rise past 45,250 is needed to get ease the downside pressure and rise towards 45,500.
Trade Strategy
Traders can stay out of the market for now.
However, short positions can be taken if the contract breaks below 44,950. Keep a stop-loss at 45,020. Trail the stop-loss down to 44,920 when the contract falls to 44,890. Move the stop-loss further down to 44,880 when the contract declines to 44,840. Exit the shorts at 44,810.
Supports: 44,950, 44,800
Resistances: 45,250, 45,400