Nifty 50 (24,252) lost 0.5 per cent last week whereas Nifty Bank (57,762) gained 0.5 per cent, showing a divergence in performance. Below is the analysis of the futures contracts and also other derivatives data of both indices.Note that since August contracts are expiring on Tuesday (August 25), we shall consider September contracts for analysis and trade recommendations.Nifty 50Nifty futures (Sep) (24,391) witnessed a sharp drop in price in the first half of last week. After marking a low of 24,212 by mid-week, the contract rebounded.The chart shows that the September futures has support levels at 24,250 and 24,100. So long as these levels are valid, the upward inclination will hold and the contract can move up.From the current level, the nearest resistance for September futures is at 24,600. A rally past this level can lift the contract to 24,850.Instead, if there is a decline that can lead to the breach of the support at 24,100, the near-term trend can turn bearish. Notable support below 24,100 is at 24,000 followed by 23,800.But unlike the chart, the futures and options data are showing mixed signs.The September futures, which slipped 0.8 per cent last week, saw its outstanding open interest rise from nearly 18 lakh contracts to 67 lakh contracts over the last week, denoting a short build-up. However, one should note that the increase is also because of August contracts nearing its expiry.Nevertheless, the Put Call Ratio (PCR) of August and September options stood at 1.1 and 1.3, respectively. A ratio greater than 1 is a positive sign because this shows traders have sold comparatively more put options. Traders sell puts when they hold positive expectations.Considering the above factors, there is a reasonably good chance for Nifty futures (Sep) to witness a rally.Strategy: Buy Nifty futures (Sep) if it slips to 24,300. Place stop-loss at 24,080. Target can be 24,750. Nifty BankNifty Bank futures (Sep) (58,044) saw some moderation in the first half of last week. However, the selling pressure was low when compared to what Nifty futures experienced.For over three weeks, the September futures has been in a sideways trend. That is, it has been oscillating between 57,500 and 58,500. So, technically, until the contract moves out of this range, the path of next price swing will remain uncertain.A breakout of 58,500 can strengthen the bulls and lead to a fresh leg of rally. This up move can take Nifty Bank futures to 59,300 and subsequently to 60,000.However, if the contract breaches the support at 57,500, it can result in a decline to 57,000. Potential support below 57,000 is at 56,500.With respect to derivatives, the September contract closed flat last week. But the outstanding open interest rose from about 2 lakh contracts to 9 lakh contracts over the last week. Even though the futures closed flat, the underlying Nifty Bank index gained 0.5 per cent. So, the increase in open interest can be associated with a bullish sign.The PCR of September options stood at nearly 1.4, showing a positive inclination among option traders.Given the above factors, it can be said that the probability for Nifty Bank futures to rally is high. Strategy: Go long on Nifty Bank futures (Sep) now at 58,044 and place a stop-loss at 57,300. Book profits at 59,300.Published on August 22, 2026