Bank Nifty Prediction Today–January 04, 2024: Limited upside. Stay out of the market

Bank Nifty January Futures (48,220)

Bank Nifty index is trading higher today. The bounce from the low of 47,481 made on Wednesday is getting a good follow-through rise today. The index is currently trading at 47,960, up 0.54 per cent. The advance/decline ratio is at 10:2. This is positive.

Outlook

The index has resistance near the current levels at 47,980. Another resistance is in the 48,230-48,250 region. Immediate support is at 47,780. Broadly, the outlook is mixed. Although a further rise to 48,250 is a possibility during the day, the index has to breach that hurdle. Only then the outlook will turn convincingly bullish for a rise to 48,500 and higher levels.

On the other hand, 48,600 is an important support. The index will come under further selling pressure if it declines below this support. If that happens, the index will fall to 48,350.

Bank Nifty Futures

The Bank Nifty January Futures (48,220) is up 0.6 per cent now. The contract has resistance at 48,400. A strong break above this resistance is needed to turn the outlook bullish for a rise to 48,700-48,800 again.

Also read: Nifty Prediction Today–January 04, 2024: Resistance ahead. Wait for a breakout to go long 

Support is at 48,000. A break below it can drag the contract down to 47,800 again.

Trade Strategy

The risk/reward ratio does not favour any trade at the moment. So we suggest traders to stay out of the market. 48,000-48,400 is the range to watch. Wait for a breakout on either side of this range and take trades accordingly.

Supports: 48,000, 47,800

Resistances: 48,400, 48,700.

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