Bank Nifty 50 July futures (45,750)

The Bank Nifty index is trading higher at 45,748, up 0.65 per cent. It surged to a new high of 45,905.85, before giving up some of the gains. The advances: declines ratio at 10:1 indicates overall strength in the index. Bank of Baroda is the only stock that is trading down by about 0.42 per cent. Bandhan Bank, Axis Bank and ICICI Bank are up over a per cent each.

Outlook

The Bank Nifty index has risen sharply, breaking ithe 44,550-45,100 range on the upside on Monday. This breakout is sustaining well today. That leaves the broader outlook for the Bank Nifty index bullish.

Support will now be around 45,600. The Bank Nifty index can rise to 46,000 in the coming sessions. The index will come under pressure only if it breaks below 45,600. In that case, a fall to 45,500 and lower levels is possible.

Bank Nifty futures

The Bank Nifty July futures (45,750) is up 0.5 per cent. The contract had surged, breaking above 45,100 on Monday, contrary to our expectations for a fall to 44,700.

Supports are at 45,600 and 45,500. The contract can rise to 46,300 in the coming sessions.

Trade strategy

Traders can go long on dips at 45,630. Stop-loss can be kept at 45,570. Trail the stop-loss up to 45,660 when the contract moves up to 45,690. Move the stop-loss further up to 45,710, when the contract touches 45,740.  Exit the longs at 45,780.

Supports: 45,600, 45,500

Resistances: 45,900, 46,300

Related Topics