Bank Nifty futures (47,520)

Bank Nifty, which gained one-third of a per cent, failed to decisively breach a resistance. Following this, the banking index has opened with a gap-down at 47,266 as against yesterday’s close of 47,456.

Although it recovered a bit, the index has fallen back to 47,265, down 0.4 per cent after the end of the first hour of today’s trade. A prolonged consolidation at the current level will increase the odds of a fall.

The advance/decline ratio of Bank Nifty stands at 5/7. Federal Bank, up 1 per cent, is the top gainer whereas Kotak Mahindra Bank, down 0.8 per cent, is the top loser.

Broadly, the public sector banks are outperforming their private sector peers. Thus, Nifty PSU bank has gained 0.5 per cent but Nifty Private bank has lost 0.5 per cent so far today.

Bank Nifty futures

Bank Nifty futures (March expiry), after closing almost flat on Monday, began today’s session lower at 47,535 versus yesterday’s close of 47,691. It is currently hovering around 47,520, down nearly 0.4 per cent.

The contract appears to be consolidating between 47,450 and 47,750. So, at this juncture, there is no directional clarity.

If Bank Nifty futures break out of 47,750, it can extend the recent rally to 49,000, a barrier. Resistance above this level is at 50,000.

On the other hand, if the contract breaks below 47,450, it can see a downswing to 47,000, a support. Subsequent support is at 46,600.

Trading strategy

Since there is no certainty over the next swing in price, we suggest traders not to initiate fresh positions at the current level. One can take new trades along the direction of the break of the 47,450-47,750 range.

Supports: 47,450 and 47,000

Resistances: 47,750 and 49,000

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