Comments
Bank Nifty opened today’s session lower at 44,108 versus Tuesday’s close of 44,399. After marking a low of 43,885, the index is currently trading around 44,000.
The bearish bias is substantiated by the breadth of the index – the advances/ declines ratio stands at 2/10. HDFC Bank, up 1 per cent, is the top gainer, whereas IndusInd Bank, down 3.1 per cent, is the top loser.
The banking sector appears to be the weakest at the sectoral level as the Nifty PSU Bank and Nifty Private Bank indices are the top losers, down by 1.4 and 1.2 per cent respectively.
Bank Nifty futures
The October Bank Nifty futures opened today’s session lower at 44,372 versus yesterday’s close of 44,621. It is currently hovering around 44,200.
The chart shows that Bank Nifty futures has breached a support at 44,300, which has opened the room for a fall towards 44,000. Support below this is at 43,800.
However, the underlying index i.e., Bank Nifty, hovers around a support at 44,000. A bounce from this level can lift the futures contract up to 44,300 or even to 44,500. A breakout of 44,500 can turn the short-term outlook bullish.
But if the Bank Nifty index slips below support at 44,000, it can drive the futures price lower.
Trading strategy
Considering the above factors, traders can stay on the fence for now.
Initiate fresh short positions on Bank Nifty futures if it falls below 44,100. The intraday target and stop-loss can be at 43,800 and 44,270 respectively.
Supports: 44,000 and 43,800
Resistance: 44,300 and 44,500
Comments
COMMENT NOW
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.