Bank Nifty futures (44,700)

Bank Nifty opened almost flat today at 45,057.95 as against yesterday’s close of 45,082.40. The index is now hovering around 44,680, down 0.9 per cent.

The advance/decline ratio gives it a bearish bias as it stands at 4/8. IndusInd Bank, up 1 per cent, is the top gainer whereas AU Small Finance Bank, down 3 per cent, is the top loser.

The public sector banks seem to be outperforming their private sector peers. Thus, Nifty PSU Bank index has advanced 0.5 per cent whereas Nifty Private Bank index is down 0.8 per cent.

Bank Nifty futures

Bank Nifty futures (January expiry) began today’s session lower at 45,096.90 versus yesterday’s close of 45,152.85. The contract is now trading at 44,700, down 1 per cent.

The contract has a support at 44,500. However, given the downward momentum, we expect this support to be breached. Following this, Bank Nifty futures could fall to 44,000.

On the other hand, if the contract recovers from here, it will face barrier at 44,800 and 45,000.

Trading strategy 

Given the current chart set up, traders can sell Bank Nifty futures now at 44,700 and add shorts if it moves up to 44,800. Place stop-loss at 45,000.

When the contract falls below 44,400, alter the stop-loss to 44,600. Book profits at 44,200.

Supports: 44,500 and 44,000

Resistances: 44,800 and 45,000