Bank Nifty opened today’s session lower at 46,480 versus yesterday’s close of 46,577. The index declined further and is hovering around 46,400, down 0.4 per cent at the end of the first hour of today’s trade.
The advance-decline ratio stands at 4:8. AU Small Finance Bank, up 0.5 per cent, is the top gainer whereas Axis Bank, down 0.8 per cent, is the top loser.
In the early trade today, the private sector banks are broadly underperforming their public sector peers. Nifty Private bank is down 0.4 per cent whereas Nifty PSU bank is flat.
Bank Nifty futures
Bank Nifty futures (February expiry) began today’s session with a slight gap-down at 46,545 versus yesterday’s close of 46,608. It is now trading at around 46,360, down 0.5 per cent.
In the hourly chart, it can be noted that Bank Nifty futures has formed a low. This increases the chance for further fall. The nearest support is at 46,000. Subsequent support is at 45,500.
Bank Nifty futures has confirmed a double-top pattern in the hourly chart, according to which the price could fall to 45,800.
On the other hand, if the contract recovers from the current level, it can face resistance at 46,600 and 47,000.
Trading strategy
Short Bank Nifty futures now at 46,360 and add shorts in case the price rises to 46,450. Place stop-loss at 46,700.
When the contract falls to 46,000, tighten the stop-loss to 46,350. Book profits at 45,800.
Supports: 46,000 and 45,500
Resistance: 46,600 and 47,000