Bank Nifty October Futures (51,726)

The Bank Nifty index is holding well above its support. The index has bounced well today and is trading at 51,628, up 0.75 per cent. Support in the 51,100-51,000 region is holding well. The advances/declines ratio is at 10:2. If sustained, a rise is possible during the day.

Bank Nifty outlook

Bank Nifty is relatively more positive than the Nifty 50. As long as the index stays above 51,000, the bias will be bullish. Intermediate support is at 51,400. A rise to 52,000-52,200 looks possible in the coming sessions.

The index has to fall below 51,000 to be under pressure to fall to 50,000-49,800.

Bank Nifty Futures

The Bank Nifty October Futures (51,726) contract is up 0.71 per cent. Intraday support is at 51,600-51,550. Below that, 51,200-51,150 is the lowest support. Outlook is bullish to see a rise to 52,250 from here.

The contract has to fall below 51,000 to become bearish. Only then will a fall to 50,700 and lower levels become evident.

Trade Strategy

Traders can go long on dips at 51,650 and 51,580. Keep the stop-loss at 51,350 initially. Trail the stop-loss up to 51,750 as soon as the contract goes up to 51,850. Move the stop-loss further up to 51,950 when the contact touches 52,050.  Exit the longs at 52,150.

Support: 51,550, 51,200

Resistances: 52,250, 52,700

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