Bank Nifty index is trading lower. The index is currently trading at 50,262, down 0.63 per cent. The advances/declines ratio is at 9:3. This is negative. If this trend continues, then the index can fall more during the day.
Bank Nifty outlook
Intraday support is around 50,200. A break below it can drag the Bank Nifty index down to 50,000 initially. An eventual break below 50,000 can take the index to 49,800 and lower in the coming sessions.
Resistance is in the 50,700-50,800 region. A sustained rise above 50,800 is needed for the index to become bullish again. That looks less likely now.
Bank Nifty Futures
The Bank Nifty August Futures (50,506) is down 0.4 per cent. It has support at 50,400. A break below it can take the contract down to 50,250 during the day. A further break below 50,250 will be bearish to see 49,900-49,800 on the downside.
In case the contract manages to bounce from around 50,400, it can rise back to 50,900-51,000.
Trade Strategy
Traders can go short on a break below 50,400. Keep a stop-loss at 50,480. Trail the stop-loss down to 50,370 as soon as the contract falls to 50,320. Move the stop-loss further down to 50,310 when the contract touches 50,280 on the downside. Exit the shorts at 50,250.
Supports: 50,400, 50,250
Resistances: 50,800, 51,000