Nifty 50 (24,176) and Nifty Bank (55,311) appreciated 0.7 per cent and 0.8 per cent, respectively, over the past week. The futures and options data of these indices largely support the bullish view. Below is an analysis.

Nifty 50

Nifty futures (May) (24,235) held on the support at 24,000 well and on the back of this, the bulls pushed the contract up last week. It posted a gain of 0.6 per cent. 

So long as the base at 24,000 holds true, the probability for further rally will remain higher. From the current level, we expect Nifty futures to eventually resume the next leg of rally.

Although 24,750 is a potential hurdle, Nifty futures will most likely surpass this and rise to 25,000 in the near-term. A breakout of 25,000 will open the door for an upswing to 26,000.

On the other hand, if the contract breaches the base at 24,000, there is another support at 23,800, which can stop the bears. However, if 23,800 is invalidated, the near-term outlook can turn negative. In such a scenario, Nifty futures can fall to 23,000.

Nevertheless, as it stands, the bulls are defending the support at 24,000 well.

Substantiating the upward bias, the May futures has seen fresh long build-up for the second week in a row. Last week, while it moved up by 0.6 per cent, the outstanding open interest rose from 152 lakh contracts to 171 lakh contracts, showing the arrival of new buyers.

Positioning in options, too, reflects the same sentiment. The Put Call Ratio (PCR) of the May options stood at 1.10 on Friday. A ratio greater than 1 is because of selling of relatively greater number of put options when compared to calls. Traders sell puts when they hold neutral to bullish outlook.

Overall, the price action and the derivatives data show that the bulls hold an advantage and so, further rally this week is highly likely. 

Strategy: Hold on to the long position on Nifty futures (May) that we recommended at 24,027. Retain the stop-loss at 23,580. Going ahead, when the contract rises to 24,500 and 24,750, raise the stop-loss to 24,200 and 24,500 respectively. Book profits at 25,000.

For option traders, we suggested buying 24,500-call of May monthly expiry at ₹250. Maintain the stop-loss at ₹80. Target can be ₹600.

Nifty Bank

Nifty Bank futures (May) (55,516) saw a decline in the first half of last week. It made a low of 54,430 on Tuesday. However, since the price region around 55,000 is a support, the lower prices was absorbed by the buyers. In fact, there was a recovery leading to the contract posting a weekly gain of 0.6 per cent.

Given that the support at 55,000 has been holding well for a month now, a decline below this price point is less likely to occur.

We anticipate a recovery soon, which can lift Nifty Bank futures to 59,000. That said, traders should note that there is a minor resistance at 57,800. While this is unlikely to turn the trend around, we can expect a minor corrective decline or a time correction after the contract rallies to 57,800.

However, if Nifty Bank futures decline from the current level and breaks down below 55,000, there are notable support levels at 54,600 and 54,000 that can arrest the decline. That said, if 54,000 is taken out, the outlook can turn bearish, possibly leading to a fall to 52,500.

But at this juncture, Nifty Bank futures’ outlook is positive. 

The May futures witnessed a long build-up over the last week – as the contract rose 0.6 per cent, the outstanding open interest increased from 20 lakh contracts to 23.2 lakh contracts.

However, the PCR of May options stood at 0.83, denoting that the option traders appear a little bearish since they have sold more calls than puts, keeping the ratio less than 1.

Overall, the chart shows that key support levels stay valid and the futures have seen a long build-up, giving the bulls some advantage. 

Strategy: Go long on Nifty Bank futures (May) at 55,500. Place stop-loss at 53,800. When the contract rises to 58,000, raise the stop-loss to 56,900. Book profits at 59,000.

Option traders can buy 56000-call of May expiry, which closed at ₹701.30 last week. Buy at ₹600. Target and stop-loss can be ₹2,000 and ₹200 respectively.

Published on May 9, 2026