Bank Nifty futures (46,660)

Bank Nifty opened today’s session slightly lower at 46,935 versus yesterday’s close of 47,020. The index dropped further and is now hovering around 46,600, down 0.9 per cent.

The advance/decline ratio of Bank Nifty stands at 1/11, giving it a considerable bearish bias. Axis Bank is the only gainer by advancing 1.4 per cent. Punjab National Bank and HDFC Bank are the top losers, down 1.6 per cent, each.

The public sector banks seem to be under more downward pressure. Nifty PSU Bank is down 1.2 per cent, whereas Nifty Private Bank has declined 0.75 per cent.

Bank Nifty futures

Bank Nifty futures (February expiry) began today’s session almost flat at 47,000 as against yesterday’s close of 47,025. It has slipped further and is now trading around 46,660, down nearly 0.8 per cent.

Since the contract has slipped below a support at 46,770, it now looks to extend the downswing. The nearest support is at 46,400 and the subsequent one is at 46,000.

In case Bank Nifty futures recover, they are likely to face hurdles at 46,770 and 47,000. A rally past 47,000 today is less likely.

Trading strategy

Short Bank Nifty futures at the current level of 46,660. Add shorts in case the price rises to 46,900. Place stop-loss at 47,200 initially.

When the contract touches 46,400, tighten the stop-loss to 46,650. Book profits at 46,000.

Supports: 46,400 and 46,000

Resistances: 46,770 and 47,000