Bank Nifty opened today’s session with a gap-down at 47,350 versus yesterday’s close of 47,545. It recovered and is currently at 47,440, down 0.2 per cent so far today.

The advance-decline ratio stands at 2:10, giving the index a bearish inclination. Axis Bank and HDFC Bank, up 0.6 and 0.4 per cent, respectively, are the two gainers. AU Small Finance Bank, down 2 per cent, is the top loser.

Within banking, public sector banks appear weaker than private peers today. Nifty PSU Bank is down 0.5 per cent whereas Nifty Private Bank has lost 0.1 per cent.

Bank Nifty futures

Bank Nifty April futures began today’s session lower at 47,699 compared to yesterday’s close at 47,893. It recovered a bit and is now trading at around 47,780, down 0.25 per cent.

The chart indicates that Bank Nifty futures should break either at 48,000 or 47,500 in order to establish a trend.

A breakout of 48,000 will open the door for a quick rally to 48,600. On the other hand, below 47,500, the contract has a support at 47,200. So, if the support at 47,500 is breached, Bank Nifty futures can dip to 47,200 and then begin a fresh leg of rally, potentially to 48,600.

Trading strategy                          

We recommend staying out of the market for now as the risk-reward ratio is unfavourable for fresh positions.

Supports: 47,500 and 47,200

Resistance: 48,000 and 48,600