Bank Nifty July Futures (45,954)

Bank Nifty index is trading flat. After opening with a wide gap-up, the index failed to sustain higher. It has come down sharply from its intraday high of 46,156. The index is currently at 45,944, up 0.04 per cent.

The advance/decline ratio at 4:8 broadly indicates weakness. AU Small Finance Bank is the worst performer in the index. The stock is down 1.14 per cent. HDFC Bank, up 0.77 per cent, is outperforming.

Outlook

The broader outlook is mixed. A dip of 45,880-45,850 looks likely during the day. If the index manages to reverse higher from the 45,880-45,850 support zone, it can rise back to 46,000 levels. In that case, 45,850-46,200 can be the broad trading range.

But a break below 45,850 can take it further down to 45,800-45,780 during the day.

Bank Nifty Futures

The Bank Nifty July Futures (45,954) is trading marginally lower. A key intraday support is at 45,860. A break below it can take the contract down to 45,800 and even 45,750 during the day.

Key resistance is at 46,300. The Nifty Bank index has to surpass this hurdle to regain the bullish momentum.

Trade Strategy

Traders can go short now. Keep the stop-loss at 46,020. Trail the stop-loss down to 45,920 as soon as the contract falls to 45,880. Move the stop-loss further lower to 45,870 when the contract touches 45,840 on the downside. Exit the short positions at 45,820.

Supports: 45,860, 45,800

Resistances: 46,000, 46,300

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