Bank Nifty opened today’s session with a gap-down at 51,053 versus yesterday’s close of 51,215. The banking index is now at 51,250, trading marginally in the green.
The advance/decline ratio stands at 6/6. IndusInd Bank, up 2 per cent, is the top gainer whereas AU Small Finance Bank, down 1.8 per cent, is the top loser.
Nifty PSU Bank has gained 0.7 per cent by the end of the first hour of today’s trade. Whereas Nifty Private Bank is trading flat. So, the public sector banks are broadly outperforming the private peers.
Bank Nifty futures
Bank Nifty futures (November contract) opened today’s session at 51,500 versus yesterday’s close of 51,552. It is now hovering around 51,550.
The contract is facing a strong barrier at 51,600. So long as Bank Nifty futures remain below this level, the inclination will be bearish.
It is likely that the contract can start the next downswing from the current level, which can drag it to 51,200, a support. Below this, 50,800 is the notable support.
In case Bank Nifty futures break out of 51,600, it can extend the upswing to 52,000. That said, given the prevailing conditions, the chance for a fall appears high.
Trading strategy
Short Bank Nifty futures now at 51,550 with a stop-loss at 51,800. When the contract falls to 51,200, alter the stop-loss to 51,500. Book profits at 50,900.
Supports: 51,200 and 50,800
Resistance: 51,600 and 52,000