Bank Nifty May Futures (47,910)
Bank Nifty index seems to be struggling to breach the psychological 48,000 mark. The index touched a high of 47,957 in the initial trades today and has then come down sharply from there. Nifty Bank index is currently trading at 47,737, down 0.26 per cent. The advances/declines ratio is at 4:8. It gives a bearish bias to see more fall during the day.
Bank Nifty outlook
The intraday picture is looking weak. The Bank Nifty index can fall to 47,600 from here. Thereafter if the index manages to bounce back, then 47,500-48,000 can happen. On the other hand, if the Nifty Bank index declines below 47,600 we can see an extended fall to 47,500 and lower during the day.
Bank Nifty Futures
The Bank Nifty May Futures (47,910) contract seems to be stuck in between 47,800 and 48,200. It is now currently near the lower end of the range at 47,910. A breakout on either side of 47,800-48,200 is needed to get clarity on the next move.
A break below 47,800 will be bearish to see 47,500-47,400 on the downside. On the other hand, a break above 48,200 will be bullish for rise to 48,400-48,600.
Trade Strategy
Traders can wait for the 47,800-48,200 to breakout. Trades can then be taken accordingly on in the direction of the breakout. We expect the range to break on the downside.
So, go short on a break below 47,800. Keep a stop-loss at 47,920. Trail the stop-loss down to 47,760 as soon as the contract falls to 47,710. Move the stop-loss further down to 47,630 when the contract touches 47,570. Exit the shorts at 47,460.
Supports: 47,800, 47,500
Resistances: 48,200, 48,400