Bank Nifty index is trading lower. It is currently at 51,390, down about 0.1 per cent. The advance-decline ratio is at 5:7. This indicates that the bias is negative. If this continues, it may fall more during the day.
Bank Nifty outlook
The Bank Nifty index has been stuck between 51,250 and 51,550 since last Friday. That leaves the outlook unclear for now. A breakout on either side of 51,250 or 51,550 will determine the next leg of move.
A break below 51,250 can take the Bank Nifty index down to 51,180. A further break below 51,180 will drag the index down to 51,000.
On the other hand, the index will gain bullish momentum if it breaks above 51,550. Such a break will clear the way for a rally to 51,800.
Bank Nifty futures
The Bank Nifty September futures (51,650) is trading flat. Support is at 51,530-51,500. A break below this can drag the contract down to 51,350-51,250 in the coming sessions.
Resistance is at 51,730. A decisive break above it can take the Bank Nifty September futures contract up to 51,900 and higher.
For now, 51,500-51,730 can be the trading range. A breakout on either side will determine the next direction of move.
Trade strategy
Traders can go long on a break above 51,730. Keep the stop-loss at 51,680. Trail the stop-loss up to 51,760 as soon as the contract moves up to 51,795. Move the stop-loss further up to 51,810 when the price touches 51,840. Exit the long positions at 51,880.
Supports: 51,500, 51,350
Resistances: 51,730, 51,900