Bank Nifty 50 July futures (45,295)
The Bank Nifty index has opened the week on a strong note. The index surged well above the psychological 45,000-mark and is up over a per cent now. The Bank Nifty index is currently at 45,198.
The advances: declines ratio at 9:3 indicates broad strength in the index. HDFC Bank, up 2.4 per cent, leads the table. On the other hand, Bandhan Bank is under-performing. The stock is down 1.8 per cent.
Outlook
The Bank Nifty index surged to an intraday high of 45,353 and is declining from there. Key resistance is at 45,250. Failure to rise above 45,250 from current levels can drag the index down to 45,100-45,000 during the day. Thereafter, the index can reverse higher again.
Overall, the outlook is bullish. We expect the Bank Nifty index to target 45,500 in the coming days.
Bank Nifty futures
The Bank Nifty July futures (45,295) is up about a per cent. The contract made a high of 45,445 and has come down from there. The chances of a further fall to 45,100-45,070 cannot be ruled out. However, such dips will attract fresh buyers into the market. As such, we can expect the Bank Nifty July futures to bounce back from around 45,100 and rise back to 45,300-45,400 again in the coming sessions.
Trade Strategy
Traders can wait for dips. Go long at 45,120 and 45,080. Keep the stop-loss at 45,040. Trail the stop-loss up to 45,140 when the contract moves up to 45,190. Move the stop-loss further up to 45,180 when the contract touches 45,220. Exit the longs at 45,240.
Supports: 45,100, 45,070.
Resistances: 45,450, 45,700