Bank Nifty index opened today’s session with a gap-down at 45,235 versus yesterday’s close of 45,593. It is currently trading at around 45,175, down by 0.9 per cent so far today.
Substantiating the strong downtrend, all the stocks in the index have fallen. Bandhan Bank and Bank of Baroda, down by 1.9 and 1.7 per cent, respectively, are the worst performing stocks in Bank Nifty.
Nifty Private Bank is down by 0.9 per cent whereas Nifty PSU Bank has lost nearly 0.8 per cent.
Bank Nifty futures
The August expiry futures of Bank Nifty opened the day lower at 45,500 versus yesterday’s close of 45,748. It is currently testing the support at 45,300.
A fall below 45,300, which is very likely, can drag the contract to 45,000 quickly. On the other hand, if there is a rebound, it might not extend beyond 45,500 today.
Trading strategy
Short Bank Nifty futures at the current level of 45,300 and add more shorts if the price inches up to 45,430. Place initial stop-loss at 45,520.
When the contract falls to 45,200, tighten the stop-loss to 45,350. Book profits at 45,000.
Supports: 45,300 and 45,000
Resistance: 45,500 and 45,600