Bank Nifty, following muted intraday movement yesterday, has begun today’s session higher at 49,375 versus yesterday’s close of 49,231. However, the index started falling after opening higher and is now hovering around 49,180, down 0.1 per cent.

The advance/decline ratio of the index stands at 5/7, showing a slight bearish bias. Bank of Baroda, up 0.4 per cent, is the best performer in the index. On the other hand, Federal Bank, down 1 per cent, is the top loser.

Within the banking space, the public sector banks seem to be facing higher downward pressure. Nifty PSU Bank is down 0.3 per cent whereas Nifty Private Bank has lost 0.15 per cent so far today.

Bank Nifty futures

Bank Nifty May futures opened today’s session higher at 49,506 as against yesterday’s close of 49,388. It is now trading around 49,400, flat so far today.

Since Bank Nifty futures is trading near a strong resistance and that it has formed a bearish pin bar a couple of days back, the probability for a decline has gone up.

But the contract has a support at 49,250 where a rising trendline support coincides. A breach of this level can trigger a fall towards 49,000 or even to 48,500.

On the other hand, if there is a rally from here, Bank Nifty futures will face a resistance at 49,650 and 50,000.

Trading strategy

The intraday trend is uncertain. We suggest refraining from initiating fresh positions at the current price.

Supports: 49,250 and 49,000

Resistance: 49,650 and 50,000