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Bank Nifty index seems to be gaining momentum. The index has risen well above the psychological 50,000 mark. It is now important to sustain above this. The index is now trading at 50,160, up 0.92 per cent. The advance-decline ratio is at 12:0. This is a bullish sign.
Bank Nifty outlook
An intraday resistance is around 50,250. A decisive break above it can take the Bank Nifty index up to 50,700 and 51,000 during the day.
On the other hand, if the index declines from around 50,250, then it can fall to 49,900 or 49,600 during the day.
Bank Nifty Futures
The Bank Nifty June Futures (50,206) is up 0.86 per cent. Resistance is around 50,300. The contract must breach this hurdle to strengthen the bullish trend. Only then will a rise to 50,900 and 51,200 come into the picture.
Failure to breach 50,300 and a subsequent fall below 50,100 can drag the contract down to 49,700 and even lower during the day.
Trade strategy
Go long only on a break above 50,300. Sop-loss can be kept at 50,210. Trail the stop-loss up to 50,340 as soon as the contract moves up to 50,390. Move the stop-loss further up to 50,460 when the price touches 50,510. Exit the longs at 50,550.
Supports: 50,100, 49,700
Resistances: 50,300, 50,900
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