a day ago
Nifty, Bank Nifty Futures signal strong upside as bulls take charge
Nifty 50 and Nifty Bank indices surged 2.1% each last week, supported by strong futures and options (F&O) data that signals sustained bullish sentiment.
Nifty 50 Futures Outlook
Nifty July futures closed at 25,750, posting a 2.2% weekly gain. This rally was backed by a sharp rise in open interest, which more than doubled to 151 lakh contracts—indicating a fresh long build-up.
The July Put-Call Ratio (PCR) stands at 1.20, while the August contract is at 1.30. A PCR above 1 suggests stronger put writing activity, a common sign of bullishness.
From a technical standpoint, Nifty July futures broke out above the resistance at 25,400, confirming bullish momentum. The next target is 26,500, and if this level is breached, a further rally to 27,000 is likely.
Support Levels:
25,400 (immediate)
25,150 (21-day moving average)
Strategy:
Continue holding long positions in Nifty July futures with a stop-loss at 25,300. If the contract crosses 26,000, raise the stop-loss to 25,700 and book profits at 26,500.
Nifty Bank Futures Outlook
Bank Nifty July futures ended at 57,648, also up by 2.1% last week. Open interest jumped fivefold to 23 lakh contracts, confirming strong long positions.
PCR readings for July and August are 1.10 and 2.20 respectively—both pointing to a bullish stance. However, the contract is nearing a resistance zone between 57,800 and 58,000.
If there's a pullback, 57,000 can act as a buying opportunity before another upward move begins. A breakout above 58,000 can take the contract to 60,000. While 59,000 might be a minor hurdle, the current momentum suggests it could be crossed smoothly.
Support Levels:
56,800 (23.6% Fibonacci retracement)
56,300 (next key support)
Strategy:
Exit the long position (initiated at 56,330) around current levels due to nearby resistance. Re-enter only on:
A breakout above 58,000 – Buy with a target of 60,000 and stop-loss at 57,000
A dip to 57,000 – Buy with a stop-loss at 56,300, and same target of 60,000
Options Strategy:
Exit the 58,000 Call (bought at ₹397) at current ₹706 levels. Consider buying an at-the-money call again on a breakout above 58,000 or a dip to 57,000.
Both indices show bullish setups backed by F&O data, but traders should watch key levels closely for confirmation before entering fresh positions.
