Bank Nifty opened today’s session at 52,361 versus yesterday’s close of 52,094. The index is now hovering around 52,150, up 0.1 per cent.
The advance/decline ratio stands at 5/7, giving the index a marginal bearish bias. HDFC Bank, up 3.4 per cent, is the top gainer whereas Kotak Mahindra Bank, down 6.2 per cent, is the top loser.
Nifty Private Bank has lost 0.9 per cent whereas Nifty PSU Bank is down 0.4 per cent. So, broadly, the private banks are underperforming the public sector peers.
Bank Nifty futures
Bank Nifty futures (October contract) opened today’s session at 52,462 versus yesterday’s close of 52,310. It is now trading at 52,300.
The price action shows that the bulls and bears are in a tug of war. Consequently, Bank Nifty futures is stuck between 52,000 and 52,800. So, only a break of the 52,000-52,800 range can lend us cues about the next potential trend.
A breakout of 52,800 can lift the contract to 54,000 whereas a breach of the support at 52,000 can drag the price lower to 51,300.
Trading strategy
As it stands, the intraday trend appears uncertain. So, we recommend traders stay away for now. One can initiate a fresh position along the direction of the break of the 52,000-52,800 range.
Supports: 52,000 and 51,300
Resistance: 52,800 and 54,000