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Bank Nifty December futures (48,055)
The Bank Nifty index is trading lower. The index made an intra-day low of 47,810 and is attempting to move up. It is currently trading at 47,986, down 0.32 per cent.
Outlook
The immediate outlook for the day is mixed. The index could go either way from here. Support is in the 47,700-47,680 band. Resistance is at 48,350. We will have to wait and see whether the contract moves up and tests the resistance, or falls to test the support from current levels.
The region between 47,700 and 47,680 is a strong support, which can hold well. As such, if a fall to this support is seen during the day, we can expect the contract to bounce back sharply and target 48,000 going forward.
Bank Nifty futures
The Bank Nifty December futures (48,055) is down 0.45 per cent. Support is at 47,880, which can be tested during the day today. If the contract manages to bounce from this support, a rise to 48,500 is possible. But a break below 47,880 can drag the Bank Nifty December futures down to 47,750-47,650.
Trade Strategy
Positional trades are recommended at this point of time, rather than an intra-day one. The trade could be as follows.
Wait for dips. Go long at 47,930 and 47,890. Keep the stop-loss at 47,780. Trail the stop-loss up to 47,960, as soon as the contract moves up to 48,050. Move the stop-loss further up to 48,150 when the contract touches 48,250. Exit the long positions at 48,400.
Supports: 47,880, 47,750
Resistance: 48,210, 48,500
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