Nifty Bank March Futures (48,650)
Nifty Bank index is getting a good follow-through rise above 48,000. The index is trading at 48,540 up 0.61 per cent. The advances/declines ratio is at 9:3. This is positive. If this sustains, the index can go further up during the day.
Nifty Bank index outlook
The strong rise above 48,000 is a positive. Another important resistance is coming up in the 48,600-48,700 region. Failure to breach this hurdle can drag the index down to 48,400-48,200 again.
But a strong break above 48,700 will boost the bullish momentum. Such a break can take the index up to 49,000-49,100. It will also keep the doors open to revisit 50,000 level in the coming days.
Nifty Bank Futures
The Nifty Bank March Future (48,650) is up 0.37 per cent. The contract has good support in the 48,600-48,500 region. It can rise to 49,000 during the day. A strong break above 49,000 can take the contract up to 49,200 initially and then to 49,600-50,000 eventually in the coming days.
The contract has to fall below 48,500 in order to come under pressure again. If that happens, we can see a fall to 48,300 and lower. But that looks less likely.
Trade strategy
Traders can go long now at 48,650 and on dips at 48,580. Keep the stop-loss at 48,460. Trail the stop-loss up to 48,710 as soon as the contract goes up to 48,790. Move the stop-loss further up to 48,810 when the contract touches 48,900. Revise the stop-loss up to 48,910 when the contract goes up to 48,940. Exit the long positions at 48,980.
Supports: 48,600, 48,500
Resistances: 49,000, 49,200