The Bank Nifty index has been coming down after failing to sustain a break above 48,000 last week. The index is currently trading at 47,590, down 0.52 per cent. The advance/decline ratio is at 4:8. This indicates the inherent weakness in the index.

Bank Nifty index outlook

The intraday outlook is weak. Resistance is in the 47,700-47,750 region. There is room for a fall to 47,450-47,430. The price action thereafter will need a close watch.

A break below 47,430 can drag the index down to 47,200. A strong bounce from around 47,430 can take the Bank Nifty index up to 47,700 again. We will have to wait and watch.

Bank Nifty Futures

The Bank Nifty March Futures (47,805) is down 0.32 per cent. Immediate support is at 47,740. Below that 47,600 is the next strong support. The level of 47,740 is holding as of now. If the contract breaks below this support, a fall to 47,600 can come into the picture. However, a further fall beyond 47,600 could be less likely.  We expect the Bank Nifty March Futures to bounce back from around 47,600 to 48,000 in the coming sessions.

Resistance is at 48,000. A break above it can take the contract up to 48,200-48,400.

Trade Strategy

Traders can wait for dips. Go long at 47,630. Keep a stop-loss at 47,580. Trail the stop-loss up to 47,660 as soon as the contract moves up to 47,690. Move the stop-loss further up to 47,710 when the contract touches 47,740. Exit the long positions at 47,780.

Supports: 47,740, 47,600

Resistances: 48,000, 48,200

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