Bank Nifty January Futures (51,912)

Nifty Bank index is trading higher. However, it is still staying within is sideways range that it has been oscillating since the beginning of the week.  The index has been stuck in between 51,000 and 52,000 this week. Within this range, it is currently trading at 51,555, up 0.75 per cent. The advances/declines ratio is at 12:0. Need to see if this trend sustains and the index gathers momentum to break the range on the upside.

Bank Nifty outlook

The near-term outlook is mixed. As mentioned above 51,000-52,000 is the trading range. The index can move either way within the range during the day. A breakout on either side of 51,000-52,000 will decide whether the index can rise to 52,300-52,500 or fall to 50,700 and lower.

Bank Nifty Futures

The Bank Nifty January Futures (51,912) is up 0.62 per cent. The contract has risen just above the intermediate resistance level of 51,800. Resistance is at 52,200. The contract has to sustain above 51,800 and breach 52,200 to gain bullish momentum. If that happens, we can see a rise to 52,600.

In case the contract declines below 51,800 again, then it can fall to 51,400.

Trade Strategy

Go long only on a break above 52,200. Keep the stop-loss at 52,120. Trail the stop-loss up to 52,240 as soon as the contract goes up to 52,290. Move the stop-loss further up to 52,330 when the contract touches 52,360. Exit the longs at 52,400.

Supports: 51,800, 51,400

Resistances: 52,200, 52,600