Bank Nifty opened today’s session with a gap-down at 52,533 versus Friday’s close of 52,660. But the index recouped some of its losses and is now hovering around 52,560, down 0.2 per cent.

Corroborating the bearish bias, the advance/decline ratio is currently at 2/10. Federal Bank and ICICI Bank, up 1.1 and 0.2 per cent respectively, are the only gainers in the index. Leading the fall are Bank of Baroda and AU Small Finance Bank, down 2.9 and 2.1 per cent respectively.

Nifty Private Bank is down 0.3 per cent whereas Nifty PSU Bank has lost nearly 0.7 per cent.

Bank Nifty futures

Bank Nifty futures (July contract) opened today’s session lower at 52,611 versus Friday’s close of 52,724. But it recovered a bit and is now trading around 52,680, down 0.1 per cent.

The contract is now moving in the sideways band of 52,300-53,300. So, technically, we cannot confirm the next leg of trend until either of these levels are breached.

Since a trendline support coincides with 52,300, a decline to this level can be a good buying opportunity. But if this level is breached, the short-term trend can turn bearish where Bank Nifty futures can drop to 52,000 and then to 51,400.

On the other hand, if Bank Nifty futures rally from the current level of 52,680 and breaks out of 53,300, it can establish another leg of uptrend, which can potentially lift the price to 54,000 and then to 55,000 in the short-term.

Trading strategy

For intraday, go long if Bank Nifty futures dip to 52,300. Target and stop-loss can be at 53,300 and 51,800 respectively.

Supports: 52,300 and 52,000

Resistances: 53,300 and 54,000

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