Bank Nifty, after opening almost flat today, has seen a decline. It began the session at 44,561 versus last week’s close of 44,584 and it has now dropped to 44,310, down 0.6 per cent so far today.

Federal Bank, up 2.2 per cent, is the top gainer whereas HDFC Bank, down 1.1 per cent, is the top loser.

The public sector banks are outperforming their private peers – Nifty PSU Bank index is up 0.3 per cent whereas Nifty Private Bank index is down 0.5 per cent.

Bank Nifty futures

The October Bank Nifty futures opened today’s session lower at 44,712 versus previous close of 44,847. It is currently trading at 44,545.

The contract has a strong support between 44,350 and 44,500. So, although the trend is bearish, the support is likely to help the contract in restricting further fall. Support below 44,350 is at 44,000.

In case Bank Nifty futures bounce off the above-mentioned support band, it can rise to 45,000, a resistance. Immediately above this is the hurdle at 45,200. For the contract to turn the trend bullish, it should break out of 45,200. If that occurs, we can see a rally to 45,600.

Trading strategy

At the current level, the risk-reward ratio is unfavourable for both long and short positions. Hence, we suggest staying out at this juncture.

Supports: 44,500 and 44,350

Resistance: 45,000 and 45,200