Bank Nifty index is trading higher. The index has recovered well from the intraday low of 51,047.80. It is currently trading at 51,400, up 0.25 per cent. The advance-decline ratio is 10:2. If this positive trend continues, then the Bank Nifty index can rise more during the day.
Bank Nifty outlook
The bounce from the low of 51,047 is a positive. It indicates strong buyers around 51,000. Intermediate support now is at 51,250. Below that, 51,000 will continue to act as a strong support.
The outlook is bullish. Bank Nifty index can rise to 51,600 and 51,800 in the coming sessions.
This bullish view will go wrong only if the Nifty declines below 51,000. If that happens, then a fall to 50,500 and lower levels is possible.
Bank Nifty futures
The Bank Nifty September futures (51,475) is up 0.2 per cent. Strong support is in the broad 51,300-51,200 region.
Some resistance is around 51,550. A break above it can take the Bank Nifty September futures contract up to 51,750 in the coming sessions.
The view will turn negative only if the contract declines below 51,200. That, in turn, will open the doors for a fall to 51,000 and lower.
Trade strategy
A positional trade that can be held for the rest of the week can be considered at the moment.
Traders can go long on dips at 51,430 and 51,350. Keep the stop-loss at 51,220 initially. Trail the stop-loss up to 51,480 as soon as the contract moves up to 51,570. Move the stop-loss further up to 51,590 when the contract touches 51,660. Exit the long positions at 51,720.
Supports: 51,300, 51,200
Resistances: 51,550, 51,750