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Bank Nifty began today’s session lower at 45,449 versus Tuesday’s close of 45,511. The index is now trading at around 45,360, down 0.3 per cent after the initial hour of trade.
The advance/decline ratio of the index stands at 2/10 exhibiting a bearish bias. Kotak Mahindra Bank (up 0.5 per cent) and HDFC Bank (up 0.2 per cent) are the two gainers in Bank Nifty so far today.
Nifty PSU Bank has declined 0.6 per cent whereas Nifty Private Bank has lost 0.4 per cent.
Bank Nifty futures
Like the underlying Bank Nifty, the September futures of the index began lower at 45,578 versus yesterday’s close of 45,628. The contract is now trading at 45,575.
Although Bank Nifty futures faced selling pressure yesterday, the overall bias is bullish. The contract has good support at 45,400 and until this level holds, the short-term bias will be bullish. Support below 45,400 is at 45,200.
On the other hand, the immediate support can be seen at 45,800. Subsequent support is at 46,000.
Trading strategy
As it stands, the chances for a rally are high as Bank Nifty futures, now trading at 45,575, has a support at 45,400.
Hence, traders can consider buying Bank Nifty futures now at 45,575 and add longs if the price dips to 45,400. Place stop-loss at 45,200.
When the contract touches 45,800, tighten the stop-loss to 45,600. Book profits at 45,950.
Supports: 45,400 and 45,200
Resistance: 45,800 and 46,000
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