Bank Nifty index is trading lower at 46,872, down 0.33 per cent. The advance/decline ratio is at 4:8, indicating a broader weakness in the index.
Outlook
The intraday price action since Tuesday indicates a sideways range of 46,660-47,250. A breakout on either side of this range will determine the next move.
A break above 47,250 will be bullish for a rise to 48,000 and higher. On the other hand, a break below 46,650 can drag it down to 46,500, and a further break below this can trigger a corrective fall to 46,200 in the coming sessions.
Bank Nifty Futures
The Bank Nifty December Futures (46,966) is down 0.4 per cent. Like the underlying index, the futures contract indicates a trading range of 46,700-47,500. We will have to wait for a breakout to get clarity.
A break below 46,700 can drag the contract down to 46,300-46,200 and even 46,000 in the coming sessions.
On the other hand, a break above 47,500 will be bullish for a push to 48,000 and higher.
Trade strategy
Since the contract has been range-bound, we suggest traders to stay out of the marker today. Wait for the breakout and take trades accordingly.
Support: 46,700, 46,300
Resistance: 47,500, 48,000
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.