Bank Nifty futures (44,350)
Bank Nifty opened today’s session with a gap-up at 44,711.20 versus Wednesday’s close of 44,566.45. But the index made a U-turn and has fallen sharply to the current level of 44,310. It is down 0.6 per cent so far today.
The bearish bias is substantiated by the breadth of the index – the advance/decline ratio stands at 3/9. Bandhan Bank, up 2.2 per cent, is the top gainer whereas Punjab National Bank, down 1.5 per cent, is the top loser.
The private sector banks are underperforming their public sector peers today so far. Thus, Nifty Private bank index is down 0.7 per cent whereas Nifty PSU bank index is down nearly 0.4 per cent.
Bank Nifty futures
Bank Nifty futures (November expiry) opened today’s session with a gap-up at 44,745 versus yesterday’s close of 44,662.65. The contract is currently trading at around 44,350, down 0.7 per cent.
The contract has its 50-day moving average at 44,300. This is supporting Bank Nifty futures well by arresting the fall. We expect a recovery on the back of this level. The contract could see a rally from here to 44,700, a potential intraday resistance. A breach of this level can lift Bank Nifty futures to 45,000.
On the other hand, if the price slips below 44,300, it can trigger another leg of downtrend. Support below 44,300 is at 44,000 and 43,800.
Trading strategy
Although there are bearish signs, Bank Nifty futures is now hovering above a strong support.
So, buy Bank Nifty futures now at 44,350. Target and stop-loss can be at 44,700 and 44,200 respectively.
Supports: 44,300 and 44,000
Resistance: 44,700 and 45,000
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.