Bank Nifty 50 July Futures (45,110)
Bank Nifty index has recovered from the low of 44,721 made on Monday. It is now currently trading at 45,034, up 0.4 per cent. The advance-decline ratio at 9:3 is indicating bullishness. IDFC First Bank, up 2.4 per cent, is the outperformer on the index. Bandhan Bank, down 1.07 per cent, is the worst performing stock.
Outlook
The Bank Nifty index has good support in the 44,960-44,920 region. As long as the index trades above this support zone, the outlook remains positive. There index is likely to touch 45,200-levels during the day.
However, the index will come under pressure if it declines below 44,900. In that case, a fall to 44,800-44,750 is possible.
Bank Nifty Futures
The Bank Nifty July Futures (45,110) is up 0.37 per cent. There is a key resistance at 45,170. The contract has to break this resistance to move further up to 45,300-45,350.
Failure to breach the 45,170-levels and a pull-back from there can drag the contract down to 45,000-44,900 during the day. In that case, the contract can continue to trade under pressure, opening the doors for the 44,800-levels.
Trade Strategy
Traders have to wait for now. Go long only after the contract breaks above 45,170. Keep a stop-loss at 45,140. Trail the stop-loss up to 45,195 as soon as the contract moves up to 45,210. Move the stop-loss further up to 45,230 when the contract touches 45,270. Exit the longs at 45,290.
Supports: 45,000, 44,900
Resistances: 45,170, 45,300