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Bank Nifty 50 July futures (45,255)
The Bank Nifty index has been volatile today. The index fell sharply from the high of 45,362 to make a low of 45,000, and has bounced back from there. It is currently trading flat at 45,155. The advances: declines ratio at 5:7 gives a mixed picture. Among the stocks in the index, IDFC First Bank is down sharply, by about 4 per cent. On the other hand, Punjab National Bank, up 3.34 per cent, is the outperformer.
Outlook
The intraday price action since Monday gives a mixed picture. There is a broad range of 44,900-45,360. The Bank Nifty index has been oscillating within this range. So, we may have to wait for a break-out on either side of this range to get clarity.
The bias is bullish. So, a break above 45,360 is more likely, which can take the index up to 45,500 and higher.
On the other hand, a break below 44,900 could take the Bank Nifty index down to 44,800-44,700.
Bank Nifty Futures
The Bank Nifty July futures (45,255) is trading flat. The contract has been stuck between 44,900 and 45,450 since Monday. We will have to wait for a break-out on either side of this range to determine the next leg of move. The bias is bullish. So, we expect the Bank Nifty July futures contract to break 45,450 and rise to 45,800 in the coming days.
Trade Strategy
Since the contract has been range-bound, we suggest traders stay out of the market.
Supports: 45,200, 44,900
Resistances: 45,400, 45,450.
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