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Bank Nifty November Futures (51,854)
Bank Nifty index is trading lower. The index is currently trading at 51,710, down about 0.3 per cent. The advances/declines ratio is at 4:8. This leaves the bias negative. It also keeps the chance high for the Bank Nifty index to fall further during the day.
Bank Nifty outlook
The Bank Nifty index is facing resistance near 52,200. The sharp fall from the intraday high of 52,169 leaves the bias negative. Bank Nifty index can fall to 51,500 and even 51,300 during the day.
A break above 52,200 is needed to get a breather. That will take the index higher to 52,600. However, such a rise looks unlikely at the moment.
Bank Nifty Futures
The Bank Nifty November Futures (51,854) is down 0.47 per cent. Resistance will be in the 52,000-52,100 region. The contract can fall to 51,550-51,500 initially. A break below 51,500 will see the fall extending to 51,250.
Bank Nifty Futures will have to rise above 52,100 to get a breather. If that happens, a rise to 52,350-52,400 can be seen. But looking at the price action on the charts, we see high chances for the contract to stay below 52,100.
Trade Strategy
Traders can go short now at 51,854. Add more shorts on a rise at 51,960. Keep the stop-loss at 52,080. Trail the stop-loss down to 51,780 as soon as the contract falls to 51,710. Move the stop-loss further down to 51,685 when the contract touches 51,620. Exit the shorts at 51,550.
Supports: 51,500, 51,250
Resistances: 52,100, 52,400
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