Bank Nifty Index is managing to hold higher. The index is currently trading at 49,320, up 0.08 per cent for the day. The advances/declines ratio is at 6:6. This indicates indecisiveness in the market. That leaves the chances equal for the Bank Nifty index to go either way from here.

Bank Nifty index outlook

On the charts, 49,500-49,530 can be a good intraday resistance zone for the Bank Nifty index. Support is around 49,200. A break below it can drag the index down to 49,000 during the day. A break below 49,000 can drag the index further down to 48,700.

Bank Nifty index has to get a decisive break above 49,500 to gain bullish momentum. Such a break can take it up to 49,700 and even 50,000 in the coming sessions.

Bank Nifty Futures

The Bank Nifty May Futures (49,314) is marginally up by 0.04 per cent. The index looks vulnerable for a fall to 49,100 and even 49,000 during the day. A break below 49,000 can see an extended fall to 48,700.

To avoid this fall the Bank Nifty May Futures contract has to get a strong break above 49,500. Only then a rise to 49,900-50,000 will come into the picture.

Trade Strategy

Traders can go short now at 49,314. Accumualte on a rise at 49,430. Keep the stop-loss at 49,530. Trail the stop-loss down to 49,280 when the contract falls to 49,230. Move the stoploss further down to 49,180 when the contract falls to 49,120.  Exit the shorts at 49,030.

Supports: 49,100, 49,000

Resistances: 49,500, 49,900

Related Topics