Bank Nifty index had opened the day with a wide gap-down and is trading lower. The index opened at 51,280.25 and made a low of 51,138.90. It is currently trading at 51,303, down 0.68 per cent. The advances/declines ratio is at 1:11. This is very negative. If this sustains, the index can remain under pressure for the day.
Bank Nifty outlook
Immediate support is at 51,250. Below that 51,100 is the next important support for the day. The index will come under more selling pressure if it declines below 51,100. If that happens, then a fall to 50,900 can be seen.
On the other hand, if the index sustains above 51,250, we can see rise to 51,600-51,800 in the coming sessions.
Bank Nifty futures
The Bank Nifty June Futures (51,380) is down 0.45 per cent. Important support is at 51,170. A break below it can take the contact down to 51,000 initially. A further break below 51,000 can drag the contract down to 50,700.
Immediate resistance is at 51,450. A break above it can take the contract higher to 51,650-51,700 during the day.
Trade Strategy
The contract has equal chances to go either way from here. So traders can stay out of the market today.
Supports: 51,170, 51,000
Resistances: 51,450, 51,650.