Bank Nifty October Futures (51,944)
Bank Nifty index has been stuck in between 51,000 and 51,750 over the last few days. Within this range, the index has moved up and is now near the upper end of the range.
The index is currently trading at 51,680, up 0.98 per cent. The advances/declines ratio is at 11:1. This is positive. If this trend sustains, then it can aid the index to break the range on the upside and move further higher.
Bank Nifty outlook
Bank Nifty index (51,680) has an immediate resistance at 51,800. A decisive break above this resistance can boost the momentum. Such a break can take the index up to 52,200 and even 52,400 in the coming sessions.
Failure to breach 51,800 can drag the index down to 51,250 and 51,000 again.
Bank Nifty Futures
The Bank Nifty October Futures contract is at 51,944 (up 1.08 per cent). Immediate resistance is at 52,050. The contract has to break this resistance to gain momentum. Such a break can take contract up to 52,200-52,300 during the day.
Failure to breach 52,050 can take the contract down to 51,700 and 51,500 in the coming sessions.
Trade Strategy
Traders can stay out of the market for now. Long positions can be taken only if a break above 52,050 is seen. Keep a stop-loss at 51,975. Trail the stop-loss up to 52,100 as soon as the contract moves up to 52,150. Move the stop-loss further up to 52,190 when the price touches 52,220. Exit the longs at 52,250.
Supports: 51,700, 51,500
Resistances: 52,050, 52,200