Bank Nifty began the week flat at 44,615 versus Friday’s close of 44,612. But the index declined soon after the open and is now hovering around 44,485, down 0.3 per cent. The overall trend remains bearish and as such, there are no indications of a bullish reversal at the moment.

Substantiating the bearish inclination, the advance/decline ratio of the index stands at 3/9. While Kotak Mahindra Bank, up 0.5 per cent, is the top performer, Axis Bank, down 1 per cent, is the top loser in the index.

Broadly, the public sector banks seem to be facing higher downward pressure – Nifty PSU Bank is down 0.6 per cent whereas Nifty Private Bank is 0.25 per cent so far.

Bank Nifty futures

The September Bank Nifty futures opened today’s session almost at 44,680 versus last week’s close of 44,677.60. It is currently trading at around 44,500, down 0.3 per cent.

The contract is now testing the support at 44,500. We expect it to breach this level and fall to 44,150, the nearest support. Notably the price band of 44,000-44,150 is a support against which the contract might see a rebound.

On the back of the support at 44,500, there might be a temporary rise to 44,700 but not beyond that. Eventually, Bank Nifty futures will most probably fall to 44,150.

Trading strategy

Short Bank Nifty futures now at 44,500 and short more in case the price rises to 44,650. Place stop-loss at 44,780.

When the contract falls to 44,300, tighten the stop-loss to 44,500. Book profits at 44,150.

Supports: 44,150 and 44,000

Resistance: 44,700 and 44,850