Bank Nifty April Futures (46,940)

The Bank Nifty index opened with a wide gap-down below 47,000 and is trading lower. The index tumbled to a low of 46,579 and is trying to bounce back from there. It is currently trading at 46,840 down about 0.5 per cent. The advance/decline ratio is at 2:10. That leaves more room for fall during the day.

Bank Nifty index outlook

The Bank Nifty index (46,840) has a crucial support in the 46,700 region. If the index manages to sustain above this support zone, a rise to 47,000-47,200 is possible during the day. Broadly, 46,700-47,200 can be the broad trading range for the day. A breakout on either side of this range will determine the next move.

A break below 46,700 will be bearish for a fall to 46,300 and 46,000. On the other hand, if the index manages to breach 47,200 a rise to 47,600-47,700 is possible.

Bank Nifty Futures

The Bank Nifty April Futures (46,940) are down 0.5 per cent. Immediate support at 46,780. A break below it can take it down to 46,600 first. A break below 46,600 can drag the contract down to 46,300 and even lower.

On the other hand, if the contract manages to sustain above 46,780, a corrective bounce to 47,200-47,400 is possible.

Considering the overall weakness in the markets, we see high chances for the Bank Nifty index to break 46,780 and fall to 46,600 and lower.

Trade Strategy

Go short only on a break below 46,780. Keep a stop-loss at 47,830. Trail the stop-loss down to 46,740 as soon as the contract falls to 46,705. Move the stop-loss further down to 46,690 when the contract falls to 46,660. Exit the shorts at 46,630.

Supports: 46,780, 46,600

Resistances: 47,000, 47,300