Nifty Bank February Futures (49,971)
Nifty Bank index has come down below the psychological 50,000 mark. The index is currently trading at 49,787, down 0.74 per cent. The advances/declines ratio is at 2:10. This is negative.
Nifty Bank index outlook
The Nifty Bank index has just come down below the key support level of 49,800. Failure to rise back above 49,800 could be negative for the day. That in turn can drag the index down to 49,500 in the coming sessions.
Nifty Bank index has to rise above 49,800 and then go above 50,000 subsequently in order to ease the downside pressure. Only then the index can gain strength for a rise to 50,400. But that looks less likely.
Nifty Bank Futures
The Nifty Bank February Futures (49,971) is down 0.76 per cent. Support is at 49,950-49,900 which is holding for now. The contract made a low of 49,920 and is attempting to bounce back. If the contract manages to rise above 50,050 decisively, a rise to 50,250 is possible.
But the contract will come under more selling pressure if it declines below 49,900. If that happens, we can get a fall to 49,750 during the day.
Trade Strategy
Traders can go short on a break below 49,900. Keep the stop-loss at 49,940. Trail the stop-loss down to 49,870 as soon as the contract falls to 49,840. Move the stop-loss further down to 49, 810 when the contract touches 49,790. Exit the shorts at 49,760.
Supports: 49,900, 49,750
Resistances: 50,050, 50,250