Bank Nifty began today’s session at 52,088 compared to last week’s close of 52,056. It has been experiencing considerable selling pressure since the opening of the session and has now depreciated to 51,820, down nearly 0.5 per cent.

The advance/decline ratio stands at 1/11, a strong bearish indication. ICICI bank, up by a marginal 0.1 per cent, is the only gainer in the index. IndusInd Bank and The Federal Bank, down 1.5 and 1 per cent, respectively, are the top losers.

Nifty PSU Bank and Nifty Private Bank are down about 0.5 per cent each. Notably, these two are the weakest sectoral indices so far today. Therefore, banking stocks in particular are facing considerable downward pressure today.

Bank Nifty futures

Bank Nifty futures (December contract) opened today’s session at 52,340 as against Friday’s close of 52,364. It has now fallen to 52,100, down 0.5 per cent.

While the bears are in control at this juncture, Bank Nifty futures has a support at 52,000. If the contract can reverse the trend on the back of this base, we can witness a recovery to 52,400 or to 52,600 today.

However, a breach of the support at 52,000 can take Bank Nifty futures down to 51,650, a support. A break below this can further pull the contract down to 51,200.

Trading strategy

Short Bank Nifty futures with a stop-loss at 52,200 if it declines below the support at 52,000. Book profits at 51,650.

Supports: 52,000 and 51,650

Resistance: 52,400 and 52,600

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