Bank Nifty December futures (48,020)
The Bank Nifty index is trading higher. The index is currently at 47,930, up 0.20 per cent. The advances/ declines ratio is at 11:1. This indicates the overall strength in the index. HDFC Bank, down 0.6 per cent, is the only stock in the red. Kotak Mahindra Bank is the outperformer in the index. The stock is up 1.17 per cent.
Outlook
The strong bounce from the low of 46,919 on Thursday is a positive. While intraday support is at 47,720, resistance is at 48,170. A break-out on either side of these levels will set the path for the Bank Nifty index going forward.
A decisive break above 48,170 will be bullish and could take the index up to 48,500 and higher. On the other hand, a break below 47,720 will be bearish. It can drag the index down to 47,000 again. We will have to wait and watch.
Bank Nifty futures
The Bank Nifty December (48,020) futures is trading lower. The contract is down 0.18 per cent. It faces resistance at 48,180, and has been edging down from this level. Intraday support at 47,770 can be tested during the day. A break below it will increase the selling pressure. Such a break can drag the contract lower to 47,400 and 47,000.
On the other hand, a sustained rise above 48,200 would bring back the bullishness. Only in that case will the contract gain momentum to rise towards 48,700 and higher.
Trade Strategy
We suggest traders stay out of the market today. See how the index closes for the week. Trades can be taken accordingly next week.
Supports: 47,770, 47,400
Resistances: 48,200, 48,700