Bank Nifty August Futures (51,250)
Bank Nifty index has risen decisively above 51,000 and is trading higher. The index was struggling to breach this psychological 51,000 mark last week. It is now trading at 51,295, up 0.70 per cent. The advances/declines ratio is 9:3. This is positive.
Bank Nifty outlook
The outlook is bullish. Support is in the 51,170-51,150 region. The Bank Nifty index can rise to 51,500 in the coming sessions.
The price action thereafter will need a very close watch. Because the region around 51,500 is a very strong resistance. Failure to breach 51,500 can take the index down to 51,200 or even lower again.
The index has to breach 51,500 in order to gain momentum and extend the rise towards 52,000 going forward.
Bank Nifty futures
The Bank Nifty August Futures (51,250) has come down sharply after making a high of 51,378. However, strong support is around 51,160 which can limit the downside.
The contract is likely to sustain above this support if the fall extends during the day. A fresh rise from there can take the Bank Nifty August Futures contract up to 51,350 again initially and then to 51,600 going forward this week.
Trade strategy
Traders can go long now at 51,250. Accumulate on dips at 51,180. Keep the stop-loss at 51,140. Trail the stop-loss up to 51,270 as soon as the contract moves up to 51,290. Move the stop-loss further up to 51,310 when the contract touches 51,330. Exit the longs at 51,350.
Supports: 51,160, 51,000
Resistances: 51,350, 51,600
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.