Bank Nifty March Futures (46,550)

Bank Nifty’s strong bounce from the low of 46,022 made on Monday failed to get a strong follow-through rise. After hitting a high of 46,739, it has been coming down. It is currently trading at 46,398, down 0.39 per cent. The advance/decline ratio is 1:11, indicating an inherent weakness.

Bank Nifty index outlook

The resistance around 46,700 is holding very well in line with our expectation. That keeps intact our bearish view of seeing a fall to 45,800-45,600 in the coming sessions.

A sustained rise above 46,700 is needed for the index to get a breather and rise to 47,000 and higher.

Also read: Nifty Prediction Today—March 19, 2024: Index slips below a support. Go short 

Bank Nifty Futures (46,550) is down 0.41 per cent. The outlook is negative. Intermediate support is at 46,400. A break below it can increase the selling pressure. Such a break can drag the contract down to 45,700-45,600 in the coming sessions.

Resistance is in the 46,800-48,900 region which is likely to cap the upside incase if a bounce happens from around 46,400.

Trade Strategy

The trailing stop-loss at 46,410 on the short positions taken on Monday at 46,610 was hit yesterday. The bias is still bearish. So, traders can once again consider taking fresh short positions.

Once again this will be positional trade that can be held for this week.

Go short now at 46,550. Accumulate shorts on a rise at 46,740. Trail the stop-loss down to 46,460 when the contract falls to 46,250. Move the stop-loss further down to 46,120 when the contract touches 45,900 on the downside. Keep a stop-loss at 46,920. Exit the shorts at 45,800.

Supports: 46,400, 45,700

Resistances: 46,700, 46,900