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Bank Nifty November futures (43,880)
The Bank Nifty Index dropped sharply after briefly breaching the 44,000-mark in the special Muhurat trading on Sunday. The index is currently trading at 43,750, down 0.55 per cent. The advances/ declines ratio is at 4:8, which indicates the inherent weakness in the index.
Outlook
Intraday support is at 43,650. A break below the support can drag the index down to 43,500 during the day. On the other hand, if the index manages to bounce back from around 43,650, it can go up again to 44,000.
The region between 44,000 and 44,100 is a strong resistance. The Nifty Bank index has to breach 44,100 to gain bullish momentum.
Bank Nifty Futures
The Bank Nifty November Futures (43,880) is down 0.4 per cent. An important support is at 43,740. A break below that level can take the Bank Nifty November Futures contract down to 43,500-43,400 in the coming days.
The contract will have to surpass 44,200 to become bullish for a further rise.
Trade Strategy
Go short only after a break below 43,740 is seen. Keep the stop-loss at 43,820. Trail the stop-loss down to 43,710 as soon as the contract falls to 43,670. Move the stop-loss further down to 43,630 when the contract touches 43,590. Exit the shorts at 43,540.
Supports: 43,740, 43,500
Resistances: 44,000, 44,200
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