Bank Nifty opened today’s session with a gap-down at 53,557 versus yesterday’s close of 53,834. The index is now hovering around at 53,220, down 1.1 per cent.
The advance/decline ratio stands at 2/10, showing the index a bearish bias. IDFC First Bank, up 0.5 per cent, is the top gainer whereas Axis Bank, down 2.2 per cent, is the top loser.
Nifty PSU Bank and Nifty Private Bank are down 1 and 1.2 per cent, respectively. So, the banking sector per se is facing considerable selling pressure today.
Bank Nifty futures
Bank Nifty futures (October contract) opened today’s session lower at 54,000 versus yesterday’s close of 54,220. It is now trading at 53,600, down 1.1 per cent.
The nearest potential support is at 53,200-53,000. A breach of 53,000 can lead to a decline to 52,700.
On the other hand, if Bank Nifty futures rally, it will face resistance at 53,750. A rally past this can lift the contract to 54,000.
Broadly, the trend is bearish and the likelihood of Bank Nifty futures falling further is high.
Trading strategy
Short Bank Nifty futures now at 53,600 and short further if it rises to 53,750. Place stop-loss at 53,900. Book profits at 53,200.
Supports: 53,200 and 53,000
Resistances: 53,750 and 54,000