Nifty Bank February Futures (48,530)
Nifty Bank index has come down sharply. The index is trading at 48,445, down about 1.1 per cent. This has just dipped below the key intermediate support level of 48,500. The advances/declines ratio is at 1:11. This is clearly bearish. It indicates that more fall could be on the cards during the day.
Nifty Bank Outlook
Support is at 48,350. Resistance is at 49,700-49,800. If the index manages to sustain above 48,350 during the day, a rise to 49,700-49,800 can be see during the day. However, a break above 49,800 is less likely.
We expect the Nifty Bank index to remain below 49,800 and fall to 47,800 in the next few days.
Nifty Bank Futures
The Nifty Bank February Futures (48,530) is down 1 per cent. The outlook is bearish. Resistance is at 48,700 which can cap the upside in the coming sessions. The Nifty Bank February Futures contract can fall to 48,100 and even 47,800 in the coming sessions.
A sustained rise above 49,200 is needed to turn the outlook positive. That looks less likely now.
Trade Strategy
Traders can wait for a rise and go short at 48,640. Keep the stop-loss at 48,760. Trail the stop-loss down to 48,580 as soon as the contract falls to 48,510. Move the stop-loss further down to 48,460 when the contract touches 48,380. Revise the stop-loss down to 48,330 when the contract reaches 48,280. Exit the short positions at 48,220.
Supports: 48,100, 47,800
Resistances: 48,700, 49,200