Bank Nifty index is attempting to recover after a sharp intraday fall on Tuesday. The index is currently at 45,611, up 0.45 per cent. The advance-decline ratio at 10:2 leaves the bias bullish. Except, ICICI Bank and AU Small Finance Bank, other stocks in the index are in green. IndusInd Bank, up 1.9 per cent, is the outperforming stock in the index.
Outlook
The immediate outlook is mixed — 45,280-45,900 will likely be the trading range. The index is currently poised near the mid-point of the range and can go either way. We will have to wait for a breakout on either side of the range for more clarity on the next move.
Bank Nifty Futures
The Bank Nifty July Futures (45,636) is up 0.3 per cent. The contract is likely to have a trading range of 45,350-45,925. A breakout on either side of this range will decide the next move. A break above 45,925 can take the contract up to 46,400. On the other hand, a break below 45,350 can drag the Bank Nifty July Futures contract down to 45,200.
Trade Strategy
Since the contract can go either way in the above-mentioned range, we suggest traders to stay out of the market.
Supports: 45,350, 45,200
Resistances: 45,925, 46,400.