Bank Nifty October Futures (53,861)
Bank Nifty index has been hovering around 54,000 since the beginning of this week. The index has been oscillating between 53,750 and 54,250 all through this week. Within this range, the Bank Nifty index is currently trading at 54,154, up 0.1 per cent. The advances/declines ratio is at 7:5. This is positive.
Bank Nifty outlook
Resistance is in the 54,200-54,250 region which can be tested during the day now. Whether the index breaks above 54,250 or not will decide the next move.
A break above 54,250 will be bullish. It can take the index up to 54,600-54,800 in the coming days.
On the other hand, a reversal from the 54,200-54,250 region will indicate that the sideways range is intact. That in turn will drag the Bank Nifty index down to 54,000 and lower.
Bank Nifty Futures
The Bank Nifty October Futures (54,428) is up 0.17 per cent. Strong support is in the 54,300-54,200 region. A strong break above 54,500 can boost the bullish momentum. Such a break can take the contract up to 54,800 and higher in the coming sessions.
Intraday dips are likely to see fresh buyers coming into the market around 54,300-54,200. As such a fall below 54,200 looks less likely.
Trade Strategy
Traders can wait for dips and buy at 54,320 and 54,280. Keep the stop-loss at 54,190. Trail the stop-loss up to 54,350 as soon as the contract moves up to 54,420. Move the stop-loss further up to 54,440 when the price touches 54,490. Exit the longs at 54,530.
Supports: 54,300, 54,200
Resistances: 54,500, 54,800