Bank Nifty opened today’s session with a gap-down at 52,697, against yesterday’s close of 52,835. It is currently trading around 52,500, down 0.6 per cent.
Barring IDFC First Bank, up 2.6 per cent, the remaining 11 stocks in the index are in the red. Federal Bank and Bank of Baroda are the top losers, depreciating by 2.2 and 1.2 per cent, respectively.
Nifty PSU Bank has lost nearly 0.7 per cent, whereas Nifty Private Bank is down 0.5 per cent. So, broadly, the public sector banks are underperforming their private peers.
Bank Nifty futures
Bank Nifty futures (December contract), like the underlying, began today’s session lower at 52,900 against yesterday’s close of 53,016. It is now hovering around 52,580, down 0.8 per cent.
The price action so far today has been bearish. But Bank Nifty futures has a support at 52,500. If this support is breached, the contract will fall to 52,200, and then to 52,000.
In case the contract recovers, it could face resistance at 53,000 and 53,400. Above this lies the key resistance at 53,850. A breakout of this level can potentially lead to a sustainable rally.
Trading strategy
Stay out. Short Bank Nifty futures if it slips below the support at 52,500. Target and stop-loss can be 52,000 and 52,750 respectively.
Supports: 52,500 and 52,000
Resistance: 53,000 and 53,400