Bank Nifty began today’s session slightly lower at 52,154 versus yesterday’s close of 52,192. It slipped after opening and is now hovering at 52,100.
The advance/decline ratio stands at 2/9, indicating a bearish inclination. Kotak Mahindra Bank, up 0.7 per cent, is the top performer whereas IDFC First Bank, down about 1.6 per cent, is the top loser.
Nifty PSU Bank has depreciated 0.5 per cent whereas Nifty Private Bank is flat. So, broadly, the private banks are outperforming their public sector peers.
Bank Nifty futures
Bank Nifty futures (November contract) opened today’s session flat at 52,218 versus yesterday’s close of 52,219. It is now trading around 52,100, down 0.2 per cent.
There is a support at 52,000, which has been acting as a support since yesterday. If Bank Nifty futures recover on the back of this level, it can rally to 52,700, a resistance. Subsequent resistance is at 53,000.
On the other hand, if the support at 52,000 is breached, the contract can decline to 51,500. The downside could extend to 51,000.
Trading strategy
Risk averse traders can refrain from taking fresh trades. Participants with higher risk appetite can buy Bank Nifty futures now at 52,100. Target and stop-loss can be 52,700 and 51,800, respectively.
Supports: 52,000 and 51,500
Resistances: 52,700 and 53,000