Bank Nifty May Futures (48,551)

Bank Nifty index is declining after gaining on Thursday.

After making an intraday high of 48,679, the index gave up the gains. It is currently trading at 48,375, down 0.25 per cent. The advances/decline ratio is at 5:7. This is negative.

Bank Nifty index outlook

An important intraday support is at 48,330-48,300. Whether this support holds or not will determine the direction of move for the rest of the day.

A bounce from around 48,300 will be bullish. It can take the Bank Nifty index up to 48,800-49,000. On the other hand, a break below 48,300 will be bearish. Such a break can drag the index down to 48,000-47,900 during the day.

It is a wait and watch situation.

Bank Nifty Futures

The Bank Nifty May Futures (48,551) is down 0.16 per cent. The contract has been struggling to get a strong follow-through rise above 48,700. There are high changes that the contract can fall to 48,300-48,250 or even to 48,200 during the day. The price action thereafter will need a very close watch.

A bounce from the 48,300-48,200 region can take the Bank Nifty May Futures contract up to 48,600-48,700. On the other hand, a break below 48,200 will be bearish to see 47,600 and even lower going forward.

Trade Strategy

Traders with high-risk appetite can go short now. Accumulate on a rise to 48,620. Keep the stop-loss at 48,720. Trail the stop-loss down to 48,520 as soon as the contract falls to 48,480. Move the stop-loss further down to 48,440 when the contract touches 48,390. Exit the shorts at 48,300.

Supports: 48,300, 48,200

Resistances: 48,700, 49,000

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