Nifty Bank index continues to remain under pressure. The index is trading lower at 55,090, down 0.1 per cent. The advances/declines ratio is at 9:3. Though this is positive, it is not reflecting on the overall performance of the index.
Nifty Bank outlook
Nifty Bank index has an intraday support at 54,800. A break below it can drag the index down to 54,000 and even lower.
The index has to sustain above it and bounce back sharply in order to avoid the above-mentioned fall.
Intraday resistance is around 55,200. A break above it can give some relief and take the index up to 55,450-55,550.
Nifty Bank Futures
The Nifty Bank August Futures (55,206) is down 0.12 per cent. The contract looks vulnerable for a fall to 55,000. Failure to bounce back thereafter can drag the contract down to 54,600.
Resistance is around 55,500. A strong break above it is needed to ease the downside pressure. Only then a rise to 55,700 and higher levels will come into the picture.
Trade Strategy
Traders can wait for a rise and go short at 55,300 and 55,380. Stop-loss can be kept at 55,480. Trail the stop-loss down to 55,280 as soon as the contract falls to 55,240. Move the stop-loss further down to 55,210 and 55,160 when the contract touches 55,180 and 55,110 respectively. Exit the shorts at 55,050.
Supports: 55,000, 54,600
Resistances: 55,500, 55,700
Published on August 25, 2025
