Bank Nifty futures (48,170)

Bank Nifty is under bear attack. It has opened the week with a gap-down at 48,058 versus last week’s close of 48,565. It declined further post the open and is now hovering around 47,950, down 1.3 per cent.

By the end of the first hour of today’s session, all 12 stocks in Bank Nifty were in the red, showing a significant bearish bias. Bandhan Bank and Punjab National Bank, down 2.2 per cent each, are the top losers.

At the moment, the overall market is facing a strong downward pressure and public sector banks are among the weakest. Consequently, Nifty PSU Bank, down nearly 2 per cent, is the second weakest sectoral index so far today. Nifty Private Bank has lost 1.3 per cent.

Bank Nifty futures

Bank Nifty April futures began today’s session considerably lower at 47,574 as against Friday’s close of 48,714. But it recovered post the open and is now trading around 48,170, down 1.1 per cent.

A quick recovery after a gap-down open means that the support at 47,800 holds true. At the same time, the recovery is now being restricted by the resistance at 48,300. A breakout of this can lift Bank Nifty futures to 48,650.

On the other hand, if the contract starts a new leg of downtrend from here, it can find support between 48,000 and 47,800. Subsequent support is at 47,500. That said, as it stands, the intraday movement appears uncertain at this juncture. There is a good chance for Bank Nifty futures to end the session between 47,800 and 48,300.

Trading strategy

Volatility has shot up and the price action shows an uncertain intraday movement. Therefore, the risk is higher for fresh trades on either side. So, we suggest traders to stay out.

Supports: 48,000 and 47,800

Resistances: 48,300 and 48,650

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