Bank Nifty September futures (45,968)

The Bank Nifty index opened the day on a positive and made a high of 46,151. However, the index has come down sharply from there, giving up all its gains and is trading lower now; it is currently at 45,829, down 0.17 per cent.

The advances/ declines ratio at 3:9 indicates broad weakness within the index. AU Small Finance Bank, up 1.53 per cent, is outperforming the other stocks within the index.

Outlook

The Bank Nifty (45,829) index has a key intraday support at 45,750. Below that, 45,650 is also a good support. We expect the support at 45,750 to hold and the index to reverse higher again. Such a reversal can take the Bank Nifty index up to 46,200-46,300 in the coming sessions.

The index will come under pressure if it breaks below 45,650. In that case, a fall to 45,400 and lower levels is possible.

Bank Nifty futures

The Bank Nifty September futures (45,968) is down 0.07 per cent. The contract has come down sharply from its intraday high of 46,210.

Support for the contract at 45,800-45,700 is expected to hold and produce a bounce. Such a bounce will keep the broader uptrend intract. A rise to 46,200-46,400 can be seen in that case.

The outlook will turn negative if the Bank Nifty September futures declines below 45,700. In that case, a fall to 45,400-45,300 is possible.

Trade Strategy

Traders can wait for dips. Go long at 45,830 and 45,770. Keep the stop-loss at 45,660. Trail the stop-loss up to 45,860 as soon as the contract moves up to 45,940. Move the stop-loss further up to 45,980 when the contract touches 46,060. Exit the long positions at 46,120.

Supports: 45,700, 45,400

Resistances: 46,200, 46400

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