Bank Nifty index is continuing to recover well. The index is trading at 49,035, up 0.63 per cent. The advances/declines ratio is at 11:1. This is a positive sign. If this trend sustains, then the Bank index can rise more from here.

Bank Nifty index outlook

The outlook is positive. Support is at 48,500. Bank Nifty index can rise to 49,300-49,400 during the day. The index will come under pressure only if it declines below 48,500. In that case, a fall to 48,000 is possible.

However, looking at the price action on the chart, a fall below 48,500 is less likely.

Bank Nifty Futures

The Bank Nifty Futures (49,071) is up 0.2 per cent. The contract has been stuck in between 48,800 and 49,300 now. A strong break above 49,300 will be bullish to see a rise to 49,600 and 49,800 in the coming sessions.

The above-mentioned rise will get negated only if the contract declines below 48,800. If that happens, we can see a fall to 48,300 and 48,000.

Looking at the rise over the last couple of days, the chances are high to break 49,300 and see more rise.

Trade Strategy

Traders can wait for a breakout and go long above 49,300. Keep the stop-loss at 49,100. Trail the stop-loss 49,380 as soon as the contract goes up too 49,440. Move the stop-loss further up to 49,460 when the contract touches 49,510. Exit the long positions at 49,600.

Supports: 48,800, 48,000

Resistances: 49,300, 49,600