Bank Nifty Prediction Today—October 19, 2023: Bearish. Go short now and accumulate on a rise

Bank Nifty October Futures (43,816)

Bank Nifty index has been falling since Tuesday. The index has declined below 43,750—the lower end of its 43,750-44,750 range. The advance/decline ratio at 1:11 indicates weakness in the index. IndusInd Bank, up 2.6 per cent, is the sole outperformer in the index.

Outlook

The break below 43,750 is a negative. The broad 43,800-43,900 region will now act as a strong resistance zone for the Nifty Bank index. The outlook is bearish to see a fall to 43,200-43,000 in the coming sessions.

Also read: Nifty Prediction Today—October 19, 2023: Bearish. Go short now 

The Bank Nifty index has to rise past 43,900 in order ease the downside pressure. Only in that case, the index will get a breather and rise back above 44,000.

Bank Nifty Futures

The Bank Nifty October Futures (43,816) is down about 0.5 per cent. The fall below 43,950 has turned the outlook bearish. The chances are high for the contract to see a fall to 43,500 in the coming days.

A strong rise above 44,050 is now needed to turn the outlook bullish.

Trade Strategy

Yesterday, we suggested to buy on dips and take a positional trade. The stop-loss on that long position has been hit.

We now suggest traders to reverse the positions and take fresh shorts at current levels. Accumulate short positions on a rise at 43,960. Keep the stop-loss at 44,080. Trail the stop-loss down to 43,780 as soon as the contract falls to 43,710. Move the stop-loss further down to 43,705 when the contract touches 43,660 on the downside. Exit the short positions at 43,520.

Supports: 43,600, 43,500

Resistances: 43,970, 44,050

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