Bank Nifty opened today’s session with a gap-down at 50,667 versus yesterday’s close of 50,980. The index is hovering around 49,300, down 3.2 per cent.
The advance-decline ratio of Bank Nifty currently stands at 1:11. AU Small Finance Bank is the only gainer but at just 0.1 per cent. On the other hand, Bank of Baroda is the top loser, down by 6.8 per cent.
Broadly the public sector banks seem to be facing higher selling pressure than their private peers. Thus, Nifty PSU Bank is down 6 per cent whereas Nifty Private Bank is down 3 per cent.
Bank Nifty futures
Bank Nifty futures (June contract) opened today’s session lower at 50,800 as against yesterday’s close of 51,283. It is now being quoted at 49,400, down 3.6 per cent.
The chart shows that an attempt to recover was blocked by the resistance at 49,850. There is a greater chance for a further fall from the current level of 49,400. If that happens it can decline back to 49,000, a support. Subsequent support is at 48,500.
On the other hand, if Bank Nifty futures rally past 49,850, it can climb to 50,500 or even 51,000.
Trading strategy
On the back of the general elections result, the market is expected to remain highly volatile today. Therefore, we suggest staying out today.
Supports: 49,000 and 48,500
Resistance: 50,500 and 51,000