Bank Nifty July Futures (52,014)

Bank Nifty index is under pressure. The index has been coming down over the last one week. Indeed, there has been an increased selling pressure since Wednesday. The index is currently trading at 51,915, down 0.53 per cent. The advances/declines ratio is at 11:1. This clearly indicates that the sentiment is highly negative.

Bank Nifty outlook

The fall below 52,000 today has increased the downside pressure. That leaves the intraday outlook negative for the Bank Nifty index. The index can fall to 51,500 during the day. A break below 51,500 will see an extended fall to 51,000.

The Bank Nifty index will have to rise above 52,100 now to ease the downside pressure and turn the outlook positive. But that looks less likely at the moment.

Bank Nifty Futures

The Bank Nifty July Futures (52,014) are down 0.58 per cent. The contract looks vulnerable to break 52,000 and fall to 51,800 during the day. A break below 51,800 can drag it further lower to 51,200.

The region between 52,100 and 52,200 is a strong resistance. The contract has to rise above 52,200 to turn the outlook positive.

Trade Strategy

Traders can go short now at 52,014. Add more shorts at 52,080. Keep the stop-loss at 52,220. Trail the stop-loss down to 51,900 as soon as the contract falls to 51,820. Move the stop-loss further down to 51,760 when the contract touches 51,680. Exit the shorts at 51,600.

Supports: 51,800, 51,200

Resistances: 52,100, 52,200