Nifty Bank index is hovering below 56,000 over the last couple of days. The index is stuck between 55,500 and 56,100. Within this range, it is currently trading at 55,778. The advances/declines ratio is at 4:8. This indicates that the bias is negative.
Nifty Bank outlook
The region around 55,500 seems to be a strong support. So, as long as the Nifty Bank index stays above this support, the bias will remain bullish to breach 56,100. Such a break can take the Nifty Bank index up to 56,500-56,600 in the coming sessions.
Nifty Bank index has to break below 55,500 to come under pressure. Only then a fall to 55,000 will come into the picture.
Nifty Bank Futures
The Nifty Bank June Futures (55,861) is marginally down buy 0.07 per cent. Immediate support is at 55,720 and resistance is at 56,060. If the contract manages to break 56,060 it can rise to 56,250 or 56,350 after that.
On the other hand, a break below 55,720 can take the contract down to 55,500 first. A further break below 55,500 will then increase the danger of the contract falling to 55,000.
We will have to wait for a breakout on either side of 55,720 or 56,050 to get clarity on the next move.
Trade Strategy
Since the market can go either way from here we suggest traders to stay out of the market today.
Supports: 55,720, 55,500
Resistances: 56,060, 56,250