Bank Nifty index is trading lower at 46,872, down 0.33 per cent. The advance/decline ratio is at 4:8, indicating a broader weakness in the index.
Outlook
The intraday price action since Tuesday indicates a sideways range of 46,660-47,250. A breakout on either side of this range will determine the next move.
A break above 47,250 will be bullish for a rise to 48,000 and higher. On the other hand, a break below 46,650 can drag it down to 46,500, and a further break below this can trigger a corrective fall to 46,200 in the coming sessions.
Bank Nifty Futures
The Bank Nifty December Futures (46,966) is down 0.4 per cent. Like the underlying index, the futures contract indicates a trading range of 46,700-47,500. We will have to wait for a breakout to get clarity.
A break below 46,700 can drag the contract down to 46,300-46,200 and even 46,000 in the coming sessions.
On the other hand, a break above 47,500 will be bullish for a push to 48,000 and higher.
Trade strategy
Since the contract has been range-bound, we suggest traders to stay out of the marker today. Wait for the breakout and take trades accordingly.
Support: 46,700, 46,300
Resistance: 47,500, 48,000