Bank Nifty January Futures (48,186)

Bank Nifty is trading lower. The index is currently trading at 48,024, down 0.28 per cent. The advance/decline ratio at 3:9 indicates broader weakness in the index.

Outlook

The Bank Nifty index has been struggling to get a sustained rise above 48,500 over the last few days. Support is at 47,700 and resistance is in the 48,300-48,500 region. We expect the index to oscillate in a range between 47,700 and 48,500 during the day. A breakout on either side of 47,700-48,500 will then determine the next leg of move.

A break above 48,500 will be bullish to see 49,000 and higher levels. On the other hand, a break below 47,700 can drag the index down to 47,350.

Bank Nifty Futures

The Bank Nifty January Futures (48,186) is down 0.4 per cent. Immediate supports are at 48,100 and 47,980. A break below 47,980 will be bearish to see 47,800-47,750 during the day.

Resistance is at 48,600. A break above it can take the contract up to 48,900.

The price action in the 48,100-47,980 will need a close watch today to see if a reversal is happening or not.

Trade Strategy

Traders can go short on a break below 47,980. Keep the stop-loss at 48,080. Trail the stop-loss down to 47,940 as soon as the contract falls to 47,905. Move the stop-loss further down to 47,880 when the contract touches 47,830 on the downside.

Supports: 48,100, 47,980

Resistances: 48,600, 48,900

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