Bank Nifty opened today’s session with a gap-down at 46,553 as against last week’s close of 46,864. It recovered a bit and is now at 46,650, down 0.5 per cent so far today.
The advance-decline ratio stands at 6:6 and therefore there is no bias on either side.
Punjab National Bank, up 0.5 per cent, is the top performer whereas HDFC Bank, down 0.7 per cent, is the top loser.
Relatively, public sector banks are doing better than their private peers. Nifty PSU Bank is flat whereas Nifty Private Bank is down 0.4 per cent.
Bank Nifty futures
Bank Nifty March futures began today’s session lower at 46,805, compared to Friday’s close at 46,929. It is now trading at around 46,730, down 0.4 per cent.
The price action shows that Bank Nifty futures is currently trading near a resistance at 47,000. The price region of 47,000-47,100 is a barrier. Until these hold, the bias will be bearish.
On the other hand, support levels are 46,400 and 46,000. Support below 46,000 is at 45,200.
Trading strategy
Stay away for now and initiate fresh shorts once Bank Nifty futures fall below 46,700. Target and stop-loss can be at 46,000 and 47,000 respectively.
Supports: 46,400 and 46,000
Resistance: 47,000 and 47,100