Bank Nifty index opened lower today at 46,064 against Thursday’s close of 46,187. The index then rallied and marked a high of 46,369.50, but moderated to 46,100. Thus, it is down by 0.15 per cent for the day.
The advance/decline ratio of Bank Nifty stands at 5/7, giving it a bearish bias. SBI is the top gainer, up by 1.3 per cent whereas Federal Bank is the top loser, down by 1.7 per cent.
Within the banking sectors, public sector banks broadly outperform the private banks – Nifty PSU Bank index is up 1.1 per cent but Nifty Private Bank index is down by 0.3 per cent.
Bank Nifty futures
The July expiry futures of Bank Nifty opened the day lower at 46,075 versus yesterday’s close of 46,151. It is currently trading at around 46,120.
The first hourly candle shows good selling pressure at around 46,300. Given the prevailing price action, there is a chance for the contract to decline to 45,900, a support. A breach of this level can drag the contract to 45,700, but this is less likely.
Bank Nifty futures will mostly resume the rally after a fall to 45,900. This can result in the contract retesting 46,300. A breakout of this level can lift the contract to 46,500.
Trading strategy
Since there is a good chance for the contract to see a corrective decline, we suggest staying out for now.
Consider longs in case Bank Nifty futures fall to 45,900. Target and stop-loss can be at 46,300 and 45,700 respectively. Note that this is an intraday trade recommendation.
Supports: 45,900 and 45,700
Resistance: 46,300 and 46,500