Bank Nifty June Futures (50,170)

Bank Nifty index has been oscillating around the psychological 50,000 mark all through this week. It is currently trading at 50,041, up 0.39 per cent. The advances/declines ratio is at 10:2. This leaves the bias positive.

Bank Nifty outlook

The Bank Nifty index has been range-bound between 49,500 and 50,250 for some time now. Within this range, the index is moving up towards the upper end. A decisive break above 50,250 will be bullish for a rise to 50,600 and higher.

But, if the index turns down from around 50,250, then the range will continue to remain intact. In that case, the index can fall back to 49,700 and 49,500 again.

Bank Nifty Futures

The Bank Nifty June Futures (50,170) is up 0.51 per cent. Resistance is around 50,300 which can be tested during the day. But the contract has to breach 50,300 decisively in order to extend the up move. Only in that case, a rise to 50,700 and higher levels will come into the picture.

If the Bank Nifty June Futures contract reverses lower from around 50,300, then the chances are high for it to fall back to 49,800.

Trade Strategy

Go long only on a break above 50,300. Keep the stop-loss at 50,220. Trail the stop-loss up to 50,340 as soon as the contract moves up to 50,390. Move the stop-loss further up to 50,380 when the contract touches 50,410. Exit the long positions at 50,440.

Supports: 49,800, 49,500

Resistances: 50,300, 50,700