Bank Nifty December futures (48,410)
Bank Nifty index has come down from the day’s high but is still in green for the day. The index made an intraday high of 48,636 and has come down from there. It is currently trading at 48,410, up 0.25 per cent. The advance/decline ratio is at 8:4. This is positive.
Outlook
The broader picture is bullish for the Bank Nifty index. Support is at 48,380. As long as the index trades above this support, the chances are high to see a rise to 50,000 in the coming days.
The near-term outlook will turn weak only if the Bank Nifty index declines below 48,380. Such a break can drag the index down to 48,100-48,000.
Bank Nifty futures
The Bank Nifty December futures (48,410) is marginally up by 0.1 per cent. Supports are at 48,330 and 48,200. An intraday dip to 48,330 looks likely now. But can the contract bounce back from 48,330 or extend the fall up to 48,200? That is not clear. A fresh rise either from 48,330 itself or from around 48,200 will see a rise to 48,800 and higher in the coming sessions.
Trade strategy
Considering the risk/reward ratio and the uncertainty about where the reversal can happen, we suggest traders stay out of the market today.
Supports: 48,330, 48,200
Resistances: 48,650, 48,800.