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Bank Nifty July Futures (44,540)
Bank Nifty has declined towards 44,300 in line with our expectation. The index made a low of 44,277.75 in early trade today and bounced slightly from there. It is currently trading at 44,366, down 0.4 per cent.
The advance/decline ratio is at 6:6 leaves and leaves a mixed signal. Among the index stocks, IndusInd Bank, down 1.56 per cent was the top loser, while Punjab National Bank, up 2.29 per cent, is outperforming.
Outlook
Bank Nifty index (44,333) has an immediate resistance at 44,400. As long as it trades below this resistance, the chances are high for it to fall to 44,200-44,180 during the day.
Bank Nifty Futures
The Bank Nifty August Futures (44,540) is down 0.53 per cent. Resistance is in the 44,650-44,700 region. The contract can fall to 44,400 – an important support level.
A bounce from 44,400 can take the contract up to 44,600-44,700 again. But a break below 44,400 will be very bearish. Such a break can drag the contract down to 44,000 and even lower thereafter.
Trade Strategy
Although a fall to 44,400 looks more evident, the risk-reward ratio is not in favour of taking any trades. So, we suggest traders to stay out of the market today.
Supports: 44,400, 44,000
Resistances: 44,700, 44,900
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