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Bank Nifty index has risen back well today. It is trading at 44,126 and is up about 0.3 per cent. The advance/decline ratio is at 7:5.
This leaves the bias positive. IndusInd Bank (up 2.12 per cent) and Axis Bank (up 1.32 per cent) are the outperformers in the index.
Outlook
The Bank Nifty index is getting support below 44,000. This is a positive signal. For now, 43,900-44,500 looks likely to be the range.
As long as the index stays above 43,900, the outlook is bullish to break 44,500. Such a break can take the Nifty Bank index up to 45,000 and higher in the coming days.
On the other hand, the index will come under pressure for a fall to 43,700-43,600 if it breaks below 43,900.
Bank Nifty Futures
The Bank Nifty June Futures (44,265) is up 0.27 per cent. The contract made a low of 44,042 and has risen back well from there. This indicates the presence of strong buyers around the psychological 44,000 mark.
As long as the contract trades above 44,000 the outlook is bullish to see a rise to 44,500-44,600 in the near term. A sustained break below 44,000 is needed to drag the contract to 43,850 and 43,500.
Trade strategy
Traders can wait for dips and go long at 44,150 and 44,050. Keep the stop-loss at 43,950. Trail the stop-loss up to 44,200 as soon as the contract moves up to 44,260.
Move the stop-loss further up to 44,320 when the contract touches 44,380. Exit the long positions at 44,450.
- Supports: 44,000, 43,850
- Resistances: 44,450, 44,600
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