Bank Nifty 50 June futures (44,233)
The Bank Nifty index is down sharply. The index is trading at 44,059, down 0.85 per cent. The advances-declines ratio (3:8) indicates weakness. HDFC Bank, down 1.36 per cent, has been beaten down the most so far for the day.
Outlook
The Bank Nifty index is now poised in the crucial 44,100-44,000 support zone. We expect the index to sustain above 44,000 and see a bounce. That can take it up towards 44,200.
The index will come under more selling pressure if it breaks below 44,000. Such a break will drag it down to 43,800.
Bank Nifty futures
The Bank Nifty June Futures (44,233) is down about 0.5 per cent. Key intraday supports are at 44,150 and 44,090. These can be tested today. We expect the contract to bounce from either of these supports. Such a bounce can take the Nifty Bank futures up to 44,300 and higher.
The outlook will turn bearish if the contract breaks below 44,090. In that case a steep fall to 43,800 is possible.
Also read: Nifty Prediction Today – May 31, 2023: Go long on dips at 18,625 and 18,605
Trade strategy
Traders can wait for dips and go long at 44,160. Accumulate at 44,100. Keep the stop-loss at 44,070. Trail the stop-loss up to 44,180 as soon as the contract moves up to 44,210. Move the stop-loss further up to 44,245 when the contract touches 44,265. Exit the long positions at 44,280.
Supports: 44,150, 44,090
Resistances: 44,300, 44,500