Bank Nifty index opened today’s session lower at 44,066 versus Friday’s close of 44,199. It is currently trading at 43,980 and is now down by 0.5 per cent.
The index appears bearish and substantiating this, the advance/decline ratio stands at 3/9. Kotak Mahindra Bank is the top gainer, up by 0.5 per cent whereas State Bank of India, down by 2.3 per cent, is the top loser.
The public sector banks seem to be more bearish within the banking space – Nifty PSU Bank index is down 1.2 per cent whereas Nifty Private Bank has lost 0.4 per cent so far today.
Also read: Nifty prediction today – August 14, 2023: Downtrend likely to extend
Bank Nifty futures
The August expiry futures of Bank Nifty opened the day with a gap-down at 44,320 versus Friday’s close of 44,464. It is currently hovering about 44,100.
The contract has a support at 44,000 and below this, is another support at 43,870. Due to this, the downward momentum might slow a bit. There might also be a corrective rally, possibly to 44,200, an intraday resistance. A rally beyond this level is less likely.
If the contract falls further and slips below 43,870, it can trigger another round of downtrend that can take the index to 43,500 or even to 43,000.
Also read: Index Outlook: Nifty 50, Sensex: More fall on the cards
Trading strategy
The trend is bearish, but Bank Nifty futures has support between 43,870 and 44,000. On the other hand, there is a resistance that can block the rally. Thus, there is a good chance for the contract to remain sideways for the rest of the day.
Therefore, we do not recommend any trades at this juncture.
Supports: 44,000 and 43,870
Resistance: 44,200 and 44,400