Bank Nifty futures (46,060)
Bank Nifty opened today’s session almost flat at 45,962 versus last week’s close of 45,971. But the index drifted lower post opening and is now at 45,820, down 0.3 per cent.
Bank of Baroda, up 2.1 per cent, is the top gainer. This is followed by Axis Bank and IndusInd Bank, up 0.7 per cent each.
Broadly, the public sector banks seem to be outperforming their private peers. Thus, Nifty PSU Bank is up 1.1 per cent whereas Nifty Private Bank is down 0.4 per cent.
Bank Nifty futures
Bank Nifty futures (February expiry) began today’s session lower at 46,100 as against previous session’s close of 46,237. It is currently trading around 46,060, down 0.4 per cent.
While there is an intraday bearish bias today, the contract has a support at 46,000. There is a chance for Bank Nifty futures to bounce off this level.
If the contract recovers on the back of 46,000, it can rally to the resistance band of 46,800-47,000 within a couple of sessions. Note that 46,400 is minor resistance.
On the other hand, if Bank Nifty futures slip below 46,000, it can extend the downswing to 45,500, its nearest support. Subsequent support is at 45,000.
Trading strategy
Traders can go short on Bank Nifty futures if it slips below the support at 46,000. Target and stop-loss can be at 45,000 and 46,500 respectively.
As a risk management measure, after initiating the sell trade, when the contract falls below 45,500, revise the stop-loss to 46,000.
Supports: 45,500 and 45,000
Resistances: 46,400 and 47,000