Bank Nifty futures (42,915)
Bank Nifty opened with a gap-down at 42,694.25 versus yesterday’s close of 42,845.95. Currently trading at 42,640, the index is down nearly 0.5 per cent after the first couple of hours of trade.
The index is down due to the downward pressure on private sector banks. Nifty Private Bank index has lost 0.6 per cent whereas Nifty PSU Bank index is up 0.6 per cent.
Punjab National Bank, up 0.8 per cent, is the top gainer whereas Kotak Mahindra Bank, down 1 per cent, is the top loser.
Yesterday, the index fell off the 200-day moving average and there are no signs of recovery yet. Also, the trend has been bearish for over a month. This places the probability of a decline high.
Bank Nifty futures
Bank Nifty futures (November expiry) opened today’s session lower at 42,981 versus yesterday’s close of 43,076.85. It is now trading at 42,915, down 0.4 per cent.
The contract has its nearest support levels at 42,680 and 42,430. On the other hand, the immediate resistance can be seen at 43,080. Subsequent barrier is at 43,280.
Trading strategy
Sell Bank Nifty futures now at 42,915. Add shorts in case the price inches up to 43,080. Place stop-loss at 43,160. Book profits when the contract falls to 42,680.
Supports: 42,680 and 42,500
Resistance: 43,080 and 43,280