Bank Nifty began today’s session with a gap-up at 46,495.45 versus last week’s close of 46,058.20. But in the first hour of trade itself, the index lost all the gains and is now hovering around 46,020.
Supporting the bearish inclination, the advance/decline ratio stands at 1/11. ICICI Bank, up 3.1 per cent, is the only gainer whereas IDFC First Bank, down 4.7 per cent, is the top loser.
Nifty PSU bank index has lost 0.9 per cent whereas Nifty Private bank index is down 0.1 per cent.
Bank Nifty futures
Bank Nifty futures began today’s session higher at 46,506.05 as against the previous session’s closing price of 46,136.05. The contract made a U-turn immediately after the opening and gave away all the gains. The contract is hovering around 46,050, down 0.2 per cent.
The sell-off in the initial hour indicates a bearish bias for the day. But Bank Nifty futures have a support at 46,000. If this level is breached, the price could drop to 45,600. A break below this level can intensify the sell-off. Support below 45,600 is at 45,000.
On the other hand, if Bank Nifty futures bounce off the support at 46,000, it will face resistance at 46,350 and 46,500.
Trading strategy
Wait for now and short Bank Nifty futures if it slips below the support at 46,000. Target and stop-loss for intraday can be at 45,600 and 46,200 respectively.
Supports: 46,000 and 45,600
Resistances: 46,350 and 46,500