Nifty Bank index continues to hover below 56,000 in a narrow range. The trading range has been 55,457-56,100 over the last couple of days. The index is rising within the range today and is currently trading at 55,843, up 0.48 per cent.
Nifty Bank index outlook
The bias remains positive to break 56,100. Such a break can take the Nifty Bank index up to 56,400-56,500 in the coming sessions. But the big question now is when the breakout above 56,100 will happen? We will have to wait and watch for that.
Nifty Bank index will come under more selling pressure if it declines below 55,540. In that case, a fall to 55,000 and lower levels can be seen.
Nifty Bank Futures
The Nifty Bank June Futures (55,960) is up 0.55 per cent. The contract seems to be gaining momentum. Intraday resistance is around 56,035. A break above it can take the contract up to 56,200 and even 56,300 in the coming sessions.
Support is in the 55,600-55,550 region. A break below 55,550 can drag the contract down to 55,300 and even lower.
Trade Strategy
Although the bias is positive, the risk/reward ratio is not favouring any trade for the day. So stay out of the market.
Supports: 55,770, 55,500
Resistances: 56,035, 56,200