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Bank Nifty opened today’s session with a gap-down at 52,844 versus yesterday’s close of 52,978. The index is now hovering around at 52,860, down 0.2 per cent.
The advance/decline ratio stands at 8/4, giving the index a bearish bias. State Bank of India, up 0.7 per cent, is the top gainer whereas Punjab National, down 2 per cent, is the top loser.
While Nifty PSU Bank is flat so far today, Nifty Private Bank is down 0.3 per cent. So, the public sector banks are outperforming the private peers.
Bank Nifty futures
Bank Nifty futures (October contract) opened today’s session lower at 53,389 versus yesterday’s close of 53,435. It is now trading at 53,300, down 0.3 per cent.
The chart shows that the contract is facing considerable selling pressure. It is likely to drop to 52,900, a potential support. Subsequent support is at 52,700.
On the other hand, if Bank Nifty futures recover from the current level, it might face a barrier at 53,500 and 53,800.
Trading strategy
Short Bank Nifty futures now at 53,300 and short further if it rises to 53,500. Place stop-loss at 53,700. Book profits at 52,800.
Supports: 52,900 and 52,700
Resistance: 53,500 and 53,800
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