Bank Nifty opened today’s session with a gap-down at 52,314 versus Tuesday’s close of 52,923. The index is now hovering around at 52,250, down 1.2 per cent.
The advance/decline ratio stands at 2/10, giving the index a bearish bias. Punjab National Bank, up 0.7 per cent, is the top gainer whereas Axis Bank, down 2.2 per cent, is the top loser.
Nifty PSU Bank has lost 0.3 per cent today whereas Nifty Private Bank is down 1.6 per cent. So, the private sector banks are underperforming the public sector peers.
Bank Nifty futures
Bank Nifty futures (October contract) opened today’s session lower at 52,905 versus Tuesday’s close of 53,381. It is now trading at 52,815, down 1 per cent.
The contract is now hovering around the support at 52,700. Given the current downward momentum, a bullish reversal on the back of this base is less likely. Yet there might be a minor corrective rally, possibly to 53,200.
But eventually, Bank Nifty futures is likely to slip below 52,700 and decline to 52,200, a support. Subsequent support is at 51,500.
Trading strategy
Short Bank Nifty futures now at 52,815 and short further if it rises to 53,100. Place stop-loss at 53,300. Book profits at 52,200.
After initiating the trade, when the price falls to 52,600, revise the stop-loss to 52,900.
Supports: 52,700 and 52,200
Resistance: 53,200 and 53,500