Nifty 50 (23,898) fell 1.1 per cent over the last week, extending the decline for fourth consecutive week. Whereas Nifty Bank (57,370) was down by a marginal 0.2 per cent during the same period, outperforming the benchmark index.The futures and options data of Nifty 50 shows a clear bearish inclination whereas that of Nifty Bank lacks conviction on both sides. Below is an analysis.Nifty 50Nifty (Sept) futures (24,048) breached the important support at 24,250 early last week. After marking an intra-week low of 23,940 on Wednesday, it recovered a little and closed the week higher at 24,048 on Friday.As the contract declined, the outstanding open interest increased 9 per cent to 168.1 lakh contracts. A price drop along with increase in open interest show fresh short build-up.That said, the PCR (Put Call Ratio) of September options stood at 1.1 on Friday. Although the ratio is greater than 1, it dropped from 1.2 to 1.1 over the last week as traders sold comparatively more number of calls, a bearish sign. The chart of Nifty futures also show weakness. At the moment, there are no signs of a bullish reversal. The prevailing price action shows strong downward momentum and so, we expect further decline from the current level.In the near-term, the September futures is likely to drop to 23,800 and subsequently to 23,630, which are the notable support levels.However, if there is a recovery from the current level of 24,048, only a clear breakout of 24,250 can turn the outlook positive again. In this case, Nifty futures can rally to 24,550 and 24,750.Overall, the probability for a fall is high and so, traders can consider fresh short positions. Strategy: Go short on Nifty futures (Sept) if it inches up to 24,180. Place stop-loss at 24,300. Book profits at 23,800.Option traders can consider buying 23800-put (₹140.20) of September monthly expiry. Buy when the premium dips to ₹110 and place stop-loss at ₹40. Book profits at ₹260. Nifty BankNifty Bank (Sept) futures (57,775) opened the last week on a flat note. However, on Wednesday, it opened with a considerable gap-down and slipped to a low of 57,211. But the contract immediately recovered and closed the week at 57,775. Thus, the price band of 57,500-58,500, which has been the trading range for the September futures since early August, remains valid. As Nifty Bank futures ended the week flat, there was not much change in the outstanding open interest. It stood at 20.2 lakh contracts on Friday compared to 20.1 lakh contracts a week ago.Also, the PCR of September options was at 1 on Friday, showing that the traders have sold almost equal number of call and put options.Hence, the derivatives data of Nifty Bank does not indicate a definite sentiment. In line with this, the chart also shows that the sideways band stays true and only a decisive breach of either 57,500 or 58,500 will lend us clues about the direction of the next leg of trend.A breakout of 58,500 can trigger a rally to 59,300 and subsequently to 60,000. However, if the contract breaches the support at 57,500, it can decline to 57,000. Potential support below 57,000 is at 56,500.Strategy: Given the uncertainty with respect to trend, we suggest traders stay out.Published on September 5, 2026