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Bank Nifty index opened with a wide gap-up today and is trading higher. The index is trading at 44,250, up 0.8 per cent. The advance-decline ratio at 10:2 indicates strength in the index. Axis Bank, HDFC Bank and Bandhan Bank share prices are up over a per cent each.
Outlook
The price action today will be important. The region between 44,200 and 44,000 will be a good support. The Bank Nifty index must sustain above 44,000 and see a strong follow-through rise in the coming sessions. If it does, then there could be a further rise to 44,600-44,800 in the coming days.
The bullish outlook will be negated if the index declines below 44,000.
Bank Nifty futures
The Bank Nifty November futures (44,350) is up 0.77 per cent. Supports are at 44,250 and 44,200. As long as the contract trades above 44,200, the outlook will remain bullish. A rise to 44,850 is likely. However, this could be preceded by an intraday dip to 44,250 or 44,200.
Trade strategy
Traders can wait for dips. Go long at 44,260 and 44,220. Keep the stop-loss at 44,180. Trail the stop-loss up to 44,290 as soon as the contract moves up to 44,320. Move the stop-loss further up to 44,330 when the contract touches 44,360. Exit the long positions at 44,380.
Supports: 44,250, 44,200
Resistance: 44,450, 44,700
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