Bank Nifty opened today’s session with a gap-down at 47,073.85 versus yesterday’s close of 47,242.65. But the index has now recovered to 47,280.

The advance/decline ratio stands at 5/7. ICICI Bank, up 0.7 per cent, is the top gainer whereas Bandhan Bank, down 2 per cent, is the top loser.

Nifty PSU bank is down 0.5 per cent whereas Nifty Private bank is up 0.1 per cent.

Bank Nifty futures

Bank Nifty futures (January expiry) opened today’s session lower at 47,280 as against yesterday’s close 47,391.50. It is currently trading around 47,500, up 0.25 per cent.

The recovery after the gap-down open means that the support at 47,500 stays valid. If the rebound sustains, the contract can rally to 48,000, a resistance. Subsequent resistance is at 48,600.

But if the contract resumes the decline, it can drop to 47,000. A breach of this support can turn the trend bearish and could lead to a sharp fall to 46,000.

Trading strategy 

The chart indicates a weak trend even though Bank Nifty futures is now trading around a support.

So, short the contract now at 47,500. Add shorts in case the price moves up to 47,780. Place stop-loss at 48,000. Book profits at 47,000.

Supports: 47,500 and 47,000

Resistances: 48,000 and 48,600