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Bank Nifty began today’s session lower at 45,179.6 versus Wednesday’s close of 45,384.6. The index fell after opening and is now trading at 45,115, down 0.6 per cent.
Bandhan Bank, up 2.4 per cent, is the top gainer whereas ICICI Bank, down 2.3 per cent, is the top loser.
While Nifty PSU Bank has advanced 1 per cent, Nifty Private Bank has lost 0.6 per cent. Thus, the private bank stocks have been a drag on Bank Nifty so far today.
Bank Nifty futures
Like the underlying Bank Nifty, the September futures of the index began with a gap-down at 45,394.8 versus yesterday’s close of 45,557.45. The contract declined further and is now trading at around 45,200.
The price action hints that Bank Nifty futures is likely to touch 45,000 today. But a fall below this is less likely before the end of today’s session.
On the other hand, the nearest resistance can be seen at 45,400. Subsequent resistance is at 45,500.
Trading strategy
Although the trend is bearish, Bank Nifty futures has a support at 45,000. Considering that the contract is currently trading at 45,200, the risk-reward is unfavourable for intraday trades.
So, wait for now and short Bank Nifty futures if it moves up to 45,350. Target and stop-loss can be at 45,000 and 45,520 respectively.
Supports: 45,000 and 44,800
Resistance: 45,400 and 45,500
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