Bank Nifty opened today’s session with a gap-down at 51,172 against yesterday’s close of 51,564. It is now hovering around 51,250, down 0.6 per cent after the first hour of trade.
11 out of 12 stocks in Bank Nifty index are in the red, led by Bank of Baroda and Punjab National Bank, down 3 and 2.2 per cent, respectively. HDFC Bank is the only gainer and has advanced 1.4 per cent.
Nifty PSU Bank index has lost 2 per cent whereas Nifty Private Bank is down 0.6 per cent. Therefore, the public sector banks are facing relatively higher selling pressure.
Bank Nifty futures
Bank Nifty futures (August contract) opened today’s session lower at 51,405 versus yesterday’s close of 51,753. It is now trading around 51,450, down nearly 0.6 per cent.
The contract has slipped below the lower band of the range 51,530-52,000. This is a bearish sign, which is corroborated by the breadth of the index.
So, the likelihood for the downswing to extend is high. Bank Nifty futures can fall to the nearest notable support at 51,000. A breach of this can drag the contract to 50,200.
However if the contract surpasses 51,600, it can turn the intraday trend positive, taking the contract back to 52,000.
- Also read: Fed talk props up markets, Nifty at 25k
Trading strategy
Short Bank Nifty futures now at 51,450. Place stop-loss at 51,650. Book profits at 51,000.
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