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Bank Nifty futures (44,370)
Bank Nifty started today’s session with a gap-down following bearish cues from the equity markets across Asia. It opened at 44,204.75 versus Friday’s close of 44,287.95 and is now hovering around 44,220, down 0.15 per cent.
However, the advance/decline ratio stands at 7/5 giving the index some positivity. Bandhan Bank, up 1.1 per cent, is the top gainer whereas AU Small Finance Bank, down 1.2 per cent, is the top loser.
The public sector banks are broadly outperforming their private peers and thus Nifty PSU Bank index is up 0.4 per cent whereas Nifty Private Bank index is down 0.1 per cent so far today.
Bank Nifty futures
The October Bank Nifty futures opened today’s session lower at 44,299.75 versus last week’s close of 44,394.05. It is currently trading around 44,370, down 0.1 per cent.
Although the contract has recovered a little after the gap-down open, there is a good intraday resistance at 44,400. A breakout of this can give bulls some room, possibly leading to a rally to 44,680. Notably, the price band of 44,680-44,800 is a resistance band.
On the other hand, if the contract falls off the barrier at 44,400, it can decline to 44,000. A breach of this can intensify the fall, where Bank Nifty futures to slip to 43,500 swiftly.
Trading strategy
We suggest going short on Bank Nifty futures on the back of the resistance at 44,400. Target and stop-loss for intraday can be 44,000 and 44,515 respectively.
Supports: 44,000 and 43,500
Resistance: 44,400 and 44,680
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