Bank Nifty opened today’s session with a gap-up at 45,973 versus yesterday’s close of 45,819. It is now hovering around 45,400, down 0.9 per cent.
The advance/decline ratio stands at 4/8. State Bank of India, up 4 per cent, is the top gainer whereas Axis Bank, down 2.7 per cent, is the top loser.
Broadly public sector banks are outperforming their private sector peers. Nifty PSU Bank has gained 2.3 per cent whereas Nifty Private Bank index is down 1.5 per cent.
Bank Nifty futures
Bank Nifty futures (February expiry) began today’s session higher at 46,276 versus yesterday’s close of 46,132. It is now hovering around 45,625, down 1.1 per cent.
Since Bank Nifty has slipped below the support at 45,800, the intraday trend will be bearish. From the current level of 45,625, the contract could decline to 45,000.
On the other hand, if Bank Nifty futures rally past 46,000, it can reverse the intraday bearish bias where it can rally to 46,300 or even to 46,500.
Trading strategy
Short now at 45,625 and add short if the price rises to 45,800. Place stop-loss at 46,100. When the contract falls below 45,400, tighten the stop-loss to 45,800. Exit at 45,200.
Supports: 45,400 and 45,000
Resistance: 45,800 and 46,000