Bank Nifty December futures (47,750)

Bank Nifty index has opened the week on a very strong note. The index is trading at 47,478, up 0.45 per cent. The advance/decline ratio is at 10:2. It indicates the overall strength in the index.

Outlook

Support for the index is at 47,250-47,200 region. Outlook is bullish to see a rise to 48,000-48,250 in the coming sessions.

The index will come under pressure only if it breaks below 47,200. Such a break can take the index down to 46,500-46,200. But such a fall looks less likely as fresh buyers are likely to come into the market and limit the downside.

Bank Nifty futures

The Bank Nifty December futures (47,750) is up 0.54 per cent. The contact has support in the 47,400-47,350 reigon. Outlook is bullish to see a rise to 48,500 in the coming sessions.

The contract will come under pressure for a fall to 47,000 and lower only if it breaks below 47,350. But such a fall is unlikely.

Trade strategy

We suggest traders to take a positional trade at the moment with a holding period of two-three days.

Go long at current levels of 47,750. Accumulate on dips at 47,500. Keep a stop-loss at 47,180. Trail the stop-loss up to 47,800 as soon as the contract moves up to 47,950. Move the stop-loss further up to 48,100 when the contract touches 48,300.  Exit the long positions at 48,500.

Supports: 47,350, 47,000

Resistances: 48,000, 48,500

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