The bank Nifty index opened today’s session with a gap-down at 43,725 versus Thursday’s close of 43,891. After marking a low of 43,672, the index has now recovered to 43,900.
As the index stays flat, the advances/ declines ratio, at 6/6, shows neutral sentiment so far today. AU Small Finance Bank, up 2.6 per cent, is the top gainer, whereas HDFC Bank, down by 0.5 per cent, is the top loser.
While the Nifty PSU Bank index has advanced 0.4 per cent, the Nifty Private Bank index is flat.
Bank Nifty futures
The August expiry futures of the Bank Nifty opened the day lower at 43,905 versus the previous session’s close of 44,047. It currently hovers around 44,000 and is thus flat for the day.
The support band of 43,870-44,000 has helped the Bank Nifty futures outperform Nifty futures, which is down by about 0.5 per cent so far today.
If the above-mentioned support band is breached, the contract is likely to see a quick fall to 43,500. The downtrend could even extend to 43,000.
On the other hand, if the contract rebounds on the back of support between 43,870 and 44,000, it might rally to 44,360 or to 44,500.
Trading strategy
The broader equity market trend is bearish today. However, since Bank Nifty futures has a support, go short if it falls below the support at 43,870. Target and stop-loss can be 43,500 and 44,030 respectively.
Supports: 43,870 and 43,500
Resistance: 44,360 and 44,500