Bank Nifty began today’s session with a gap-up at 52,555 versus previous session’s close of 52,208. The index is currently hovering around 52,180.

The advance/decline ratio stands at 5/7, showing a bearish bias. ICICI Bank, up 0.7 per cent, is the top performer whereas AU Small Finance Bank, down about 1.1 per cent, is the top loser.

Nifty PSU Bank has appreciated 0.15 per cent whereas Nifty Private Bank is flat. So, broadly, the public sector banks are slightly outperforming their private peers.

Bank Nifty futures

Bank Nifty futures (November contract) opened today’s session at 52,399 versus yesterday’s close of 52,172. It is now trading around yesterday’s close.

The contract, currently hovering around 52,170, is stuck between 51,500 and 52,700. So, it is trading around the middle of the 51,500-52,700 range. This makes the risk-reward ratio for both long and short positions unfavourable.

A breakout of 52,700 can take Bank Nifty futures to 53,000 and then possibly to 54,000. On the other hand, if there is a decline from the current level of 52,170, it can find support at 51,500. A breach of the support at 51,500 can lead to a fall to 51,000.

Trading strategy

Risk averse traders can stay out. Traders with higher risk appetite can buy Bank Nifty futures at 52,000. Target and stop-loss can be 52,700 and 51,700 respectively.

Supports: 51,500 and 51,000

Resistance: 52,700 and 53,000

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