Bank Nifty opened today’s session at 51,657 versus yesterday’s close of 51,778. The index declined after opening and is now trading around 51,460, down 0.6 per cent.
All the 12 stocks in the index are down, indicating a strong downward bias. Bandhan Bank, down nearly 2 per cent, and Axis Bank, down 1.6 per cent, are leading the sell-off.
Broadly, the private banks are facing higher selling pressure compared to public sector banks. Thus, Nifty Private Bank is down 0.6 per cent whereas Nifty PSU Bank lost 0.3 per cent so far.
- Also read: Nifty prediction today – Jul 24, 2024: Intraday trend can be sideways, refrain from trading
Bank Nifty futures
Bank Nifty futures (July contract) opened today’s session lower at 51,611 versus yesterday’s close of 51,818. It is now hovering around 51,520, down 0.6 per cent.
The contract is now approaching a support at 51,400. If this level is breached, it can result in a sharp fall to 50,500 and then even to 50,000.
However, if Bank Nifty futures bounce off the support at 51,400, it can rally to 52,000, a resistance. Subsequent resistance is at 52,800.
But as it stands, the price action shows a bearish bias, and the likelihood of a decline is high.
Trading strategy
Short Bank Nifty futures if it slips below the support at 51,400. Target and stop-loss can be 50,000 and 52,100 respectively. To manage risk, when the contract falls to 50,500, tighten the stop-loss from 52,100 to 51,100.
Supports: 50,500 and 50,000
Resistances: 52,000 and 52,800