The strong gap-up open today gives some relief to the Nifty Bank index. The index been falling consistently over the last two weeks. Nifty Bank index is currently trading at 55,147, up 1.1 per cent. The advances/declines ratio is at 14:0. This is positive.

Nifty Bank outlook

Resistance is around 55,250. The index touched a high of 55,345 in the early trades and has come down from there. A sustained rise above 55,250 is needed to take the index further higher towards 55,500 during the day.

If the index continues to trade below 55,250, a fall to 54,800 can be seen.  A bounce thereafter will keep the chances alive for the index to breach 55,250 eventually.

But if the Nifty Bank index declines below 54,800, then a steeper fall to 54,500 and lower levels can be seen.

Nifty Bank futures

The Nifty Bank May futures (55,418) is up 1.11 per cent. The contract has resistance at 55,675 and support is at 55,100. So, the contract can oscillate between 55,100 and 55,675 for some time.

A breakout on either side of 55,100 or 55,675 will determine the next leg of move. A break above 55,675 will be bullish to see 56,000. On the other hand, a break below 55,100 can drag the contract down to 54,700.

Trade strategy

Considering the risk/reward ratio and lack of clarity on the immediate direction of move, we suggest traders to stay out of the market.

Supports: 55,100, 54,700

Resistances: 55,675, 56,000

Published on May 6, 2026