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Bank Nifty February futures (45,447)
The Bank Nifty index is trading lower at 45,240, down 0.58 per cent. It made a low of 45,344 and has recovered well from there. The advances/ declines ratio is at 3:9. This is negative.
Bank Nifty index outlook
The Bank Nifty index has been oscillating sideways between 44,600 and 45,750 over the last few days. Intra-day resistance within this range is at 45,400-45,450. Failure to breach this hurdle can drag the Bank Nifty index down to 44,900 and 44,600 again in the coming sessions.
Overall, the bias is negative. We expect the Bank Nifty index to drop within the 44,600-45,750 range during the day.
The Bank Nifty February futures (45,447) is down 0.67 per cent. Strong intraday resistance is in the broad 45,650-45,750 region. We expect this resistance to cap the upside. The contract is likely to turn around and fall towards 45,000 and 44,850 in the coming sessions.
A key short-term resistance is around 46,000. The index has to rise past this resistance decisively to turn the outlook bullish.
Trade Strategy
Traders can go short on a rise at 45,630 and 45,720. Keep the stop-loss at 45,880. Trail the stop-loss down to 45,580 as soon as the contract falls to 45,510. Move the stop-loss further down to 45,370 when the contract touches 45,280 on the downside. Exit the shorts at 45,150.
Supports: 45,000, 44,850
Resistances: 45,650, 45,750
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