Bank Nifty 50 June futures (44,035)
The Bank Nifty index fell below 44,000 on Thursday contrary to our expectations. The index is now struggling to rise past 44,000. It made a high of 44,040 in early trades today, and has come off sharply from there. It is currently at 43,881, up 0.21 per cent. The advances/ declines ratio at 11:1 indicates bullishness. But we will have to wait and watch.
Outlook
The index has to see a sustained rise past 44,000 to move up towards 44,200-44,300 again. As long as it stays below 44,000, a fall to 43,700 and lower levels cannot be ruled out before a fresh rise is seen.
Bank Nifty futures
The Bank Nifty June futures (44,035) is also up 0.21 per cent. Important resistances are at 44,060 and 44,175. The contract has to rise past 44,175 to gain bullish momentum. Only in that case will a rise to 44,300 and higher levels come into the picture. Until then the possibility of a fall to 43,800-43,600 cannot be completely ruled out.
Trading Strategy
We suggest that traders stay out of the market and see how the contract closes for the week today. Thereafter, trades can be taken accordingly next week.
Supports: 43,900, 43,800
Resistances: 44,060, 44,175