Bank Nifty index opened today’s session higher at 44,994 versus Friday’s close of 44,880. However, it has now moderated to 44,800 and is now down 0.2 per cent for the day.

The advance/decline ratio stands at 3/9, giving the index a bearish bias. Punjab National Bank, up by 0.6 per cent, is the top gainer whereas, AU Small Finance Bank, down by 1.6 per cent, is the worst performer in the index.

While Nifty PSU Bank has lost 0.2 per cent, Nifty Private Bank is down 0.1 per cent.

Also read: Nifty Prediction today – August 7, 2023: Resistance ahead for the index

Bank Nifty futures

The August expiry futures of Bank Nifty opened the day with a gap-up at 45,049 versus previous week’s close of 45,002. After marking a high of 45,133, the contract declined and is now trading at around 44,930.

The contract has a support at 44,900. A breach of this level can trigger a quick fall to 44,500, a strong base. On the other hand, if the contract moves up from the current level of 44,930, it will face a trendline resistance at 45,100. Immediately above this is another barrier at 45,200.

Broadly, the bias is bearish and we expect Bank Nifty futures to fall. The trend will turn positive only if the price rises above 45,200.

Also read: Index Outlook: Nifty 50, Sensex: Resistances ahead

Trading strategy

Although the likelihood of a decline is high, we recommend going short on Bank Nifty futures only after it slips below the support at 44,900. Target and stop-loss can be at 44,500 and 45,100.

Supports: 44,900 and 44,500

Resistance: 45,100 and 45,200

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