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The Bank Nifty index is under pressure. The index is down 0.53 per cent. It is currently trading at 43,685. The advance: decline ration at 4:8 indicates weakness.
In spite of the broader weakness, IDFC First Bank and Bank of Baroda stocks are up sharply about 3 per cent.
Outlook
The short-term picture remains weak. The Bank Nifty index is struggling to rise past 44,000 after falling sharply below this level last week. We see high chances for the index to fall towards 43,500-43,400 today.
Bank Nifty Futures
The Nifty Bank June Futures (43,800) are down about 0.55 per cent. Resistance is at 44,000. As long as the contract trades below 44,000, the outlook is bearish to see 43,500 on the downside during the day.
The contract has to rise past 44,000 to ease the downside pressure and move higher. But that looks less likely.
Trading strategy
Traders can go short now. Accumulate shorts at 43,930 if a bounce is seen. Keep the stop-loss at 44,050. Trail the stop-loss down to 43,775 as soon as the contract falls to 43,710.
Move the stop-loss further down to 43,680 when the contract touches 43,620. Exit the shorts at 18,520.
- Supports: 18,500, 18,350.
- Resistances: 44,000, 44,250.
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