Bank Nifty October Futures (51,322)
Bank Nifty index is hovering above an important support. The index has bounced slightly after witnessing a strong sell-off for two consecutive days. It is currently trading at 51,288, up 0.06 per cent. The advances/declines ratio is at 6:6. This leaves the outlook unclear.
Bank Nifty outlook
Bank Nifty index has a good support in the 51,100-51,000 region. If it manages to sustain above this support zone, there are good chances to see a bounce back move in the coming sessions.
Resistance is in the 51,400-51,500 region. A strong break above 51,500 can take the index up to 51,800 and higher in the coming days.
The index will come under pressure only if it breaks below 51,000. Such a break can drag it down to 50,000-49,800.
Bank Nifty Futures
The Bank Nifty October Futures (51,322) has come down sharply from the intraday high of 51,644. It can fall back to 51,200-51,100. But 51,100 is a strong support. A bounce from this support can take it back up to 51,500-51,600 again.
A sustained break above 51,600 will be bullish to see 51,900 and higher.
The contract will come under more selling pressure only if it declines below 51,100. That can take it down to 50,700
Trade Strategy
We expect the support at 51,100 to hold. So, traders with high-risk appetite can go long on dips at 51,180 and 51,120. Keep the stop-loss at 50,920. Trail the stop-loss up to 51,220 as soon as the contract moves up to 51,280. Move the stop-loss further up to 51,350 when the contract touches 51,420. Exit the long positions at 51,600.
Supports: 51,100, 50,900
Resistances: 51,600, 51,900
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