Bank Nifty April Futures (47,630)

The Bank Nifty index continues to fall. The index fell below the key level of 48,000 on Monday. That is keeping the index under pressure. It is currently trading at 47,510, down 0.55 per cent. The advance/decline ratio is at 1:11. This clearly indicates the inherent weakness in the index. So, the chances are looking high to see more fall during the day.

Bank Nifty outlook

The outlook is bearish. Resistance is in the 47,650-47,700 region. Support is around 47,200. The chances are looking high for the index to break 47,200 and fall to 47,000 in the coming sessions.

Bank Nifty Futures

The Bank Nifty April Futures (47,630) is down 0.46 per cent. Resistance is around 47,750. The contract has room to test 46,900 in the coming sessions. A strong and sustained rise above 47,750 is needed to ease the downside pressure. In that case, a rise to 48,000 and higher levels can be seen. But the chances of such a rise looks less probable at the moment.

Trade Strategy

Traders can go short now at 47,630. Add shorts at 47,750. Keep the stop-loss at 47,940. Trail the stop-loss down to 47,580 when the contract falls to 47,480. Move the stop-loss further down to 47,320 when the contract touches 47,200 on the downside. Exit the shorts at 47,060.

Supports: 47,400, 46,900

Resistances: 47,750, 48,000