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Bank Nifty, after 0.5 per cent last week, began today’s session with a gap-up at 44,647.65 versus Friday’s close of 44,436.10. However, immediately after the open, the index fell and is now hovering around 44,420, erasing all the gains.
The advance/decline ratio is not giving a signal as it stands at 6/6. IDFC First Bank, up 1.9 per cent, is the top gainer whereas ICICI Bank, down 0.6 per cent, is the top loser.
Nifty PSU Bank index has advanced 1 per cent after the initial hour of trade whereas Nifty Private Bank index is up 0.2 per cent.
Bank Nifty futures
The September contract opened today’s session unusually lower at 44,160 versus last week’s close of 44,601. But it is now up to the current level of 44,600 i.e., around Friday’s closing level.
While the price action over the last couple of weeks is hinting at a bullish trend reversal, in today’s session Bank Nifty futures is facing a resistance at 44,800. If this level is breached, the contract can rally to 45,200.
On the other hand, if the contract falls from the current level of 44,600, there are support levels at 44,400 and 44,100.
Trading strategy
Stay out for now and initiate fresh longs when Bank Nifty futures break out of 44,800. Target and stop-loss can be at 45,200 and 44,600 respectively. Note that this is an intraday trade recommendation.
Supports: 44,400 and 44,100
Resistance: 44,800 and 45,200
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