Bank Nifty began today’s session at 51,984 versus yesterday’s close of 51,907. It is currently hovering around 51,870, down by a marginal 0.1 per cent.
The advance/decline ratio stands at 2/10, indicating a bearish bias. Kotak Mahindra Bank, up nearly 0.4 per cent, and ICICI Bank, up 0.3 per cent, are the only gainers. Punjab National Bank, down 1 per cent, is the top loser.
Nifty PSU Bank has slipped 0.25 per cent whereas Nifty Private Bank is flat so far today. Therefore, comparatively, the public sector banks appear weaker.
Bank Nifty futures
Bank Nifty futures (December contract) opened today’s session with a minor gap-up at 52,390 versus yesterday’s close of 52,329. By the end of the first hour of today’s session it is trading around 52,350.
Yesterday, the contract fell off the resistance at 53,000. But from the current level, there is a support at 52,000. So, there is a good chance for Bank Nifty futures to attempt for a recovery.
It is likely to retest 53,000 from the current level of 52,350. On the other hand, if Bank Nifty futures falls and breaches the support at 52,000, it can extend the downswing to 51,500, a support.
Trading strategy
Traders with high risk tolerance can go long on Bank Nifty futures now at 52,350 and place a stop-loss at 52,000. Book profits at 53,000.
Supports: 52,000 and 51,500
Resistances: 53,000 and 54,000