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Bank Nifty opened today’s session with a gap-down at 48,194.80 versus yesterday’s close of 48,234.30. It is now hovering around 47,900, down 0.7 per cent.
Currently, all 12 stocks in the system are down, giving the index a bearish bias. AU Small Finance Bank, down 2.1 per cent, and IDFC First Bank, down 1.5 per cent, are the top losers.
Both Nifty Private bank and Nifty PSU bank indices have lost 0.7 per cent each.
Bank Nifty futures (January expiry) opened today’s session lower at 48,375 as against yesterday’s close of 48,535.70. It is now trading at 48,140, down 0.8 per cent.
Also read: Nifty Prediction Today–January 02, 2024: Bearish. Go short now and accumulate on a rise
The contract, although exhibiting a bearish bias, has a considerable support at 48,000. There is a chance for Bank Nifty futures to bounce off this level. If there is a rebound, the contract rises to 48,600.
On the other hand, if Bank Nifty futures drop below 48,000, the downswing can extend to 47,500, a support. Subsequent support is at 47,000.
Trading strategy
As there is a strong support at 48,000, traders can risk going long now at 48,140 with a stop-loss at 47,850.
When the contract rises to 48,300, tighten the stop-loss to 48,100. Book profits at 48,500.
If the contract sees an hourly candle close below 48,000, exit the long and initiate a short position. Target and stop-loss for this trade can be at 47,500 and 48,200 respectively.
Supports: 48,000 and 47,500
Resistances: 48,600 and 49,000
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