Bank Nifty July Futures (52,450)

Bank Nifty index is trading weak. The index opened with a gap-down and has come down and is continuing to trade lower. It is currently trading down 1.3 per cent. The advances/ declines ratio is at 4:8. This is negative. If this trend sustains, the Nifty Bank index can fall more during the day.

Bank Nifty index outlook

The intraday outlook is bearish. Bank Nifty index (52,410) has a strong resistance in the 52,800-52,850 region. There is room on the downside to see a fall to 51,800-51,700 during the day.

The Bank Nifty index has to breach 53,300 to become bullish again. Only in that case can the index gain momentum and rise towards 54,000.

Bank Nifty Futures

The Bank Nifty July Futures (52,450) is down 1.36 per cent. The index has support at 52,100, which can be tested during the day.  A bounce from around 52,100 can take the contract up to 52,800 during the day. But a break below 52,100 will increase the selling pressure. Such a break can drag the Bank Nifty July futures down to 51,500.

Resistances are at 52,800, 53,000 and 53,300. The contract has to breach 53,300 to bring back the bullishness again.

Trade Strategy

Wait for a rise. Go short at 52,750. Keep the stop-loss at 52,900. Trail the stop-loss down to 52,650 as soon as the contract moves down to 52,580. Move the stop-loss further down to 52,480 when the contract touches 52,420 on the downside. Exit the shorts at 52,300.

Supports: 52,100, 51,500

Resistances: 52,800, 53,000