Bank Nifty opened today’s session with a gap-down at 52,532 versus yesterday’s close of 52,621. It further moved south and is now at 52,400, down 0.4 per cent so far.

Out of the 12 stocks in the index, 11 are in the red, indicating a bearish bias. The only gainer is HDFC Bank, that too, by a marginal 0.1 per cent. IDFC First Bank and Bandhan Bank, down 1.5 per cent each, are leading the decline.

Nifty PSU Bank has lost nearly 0.7 per cent whereas Nifty Private Bank is down 0.5 per cent. So, while the banking sector on a whole is under selling pressure, the public sector banks are comparatively weaker than their private sector peers.

That said, Bank Nifty’s sideways crawl continues.

Bank Nifty futures

Bank Nifty futures (July contract) opened today’s session lower at 52,535 versus yesterday’s close of 52,670. It declined after opening and is now quoted around 52,420, down nearly 0.5 per cent.

Within the broader range of 52,300-53,300, Bank Nifty futures has been moving in a narrow range of 52,300-52,800 for nearly two weeks. So, the price action clearly shows that the contract is struggling to establish a trend in either direction.

Bank Nifty futures can re-establish its bull trend if it rallies past the hurdles at 52,800 and 53,300. On the other hand, if the contract slips below 52,300, the outlook can turn bearish where it could fall to 51,500 and then to 51,000.

Trading strategy

Stay out. For intraday, traders can consider going long if Bank Nifty futures surpass the resistance at 52,800. Target and stop-loss can be 53,300 and 52,580 respectively.

Supports: 52,300 and 51,500

Resistance: 52,800 and 53,300

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