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Bank Nifty index opened today’s session lower at 43,726 versus Monday’s close of 44,091. It is down by 0.6 per cent so far and is trading at around 43,815.
The index is showing a clear bearish bias as the advance/decline ratio stands at 2/10. State Bank of India, up by 0.5 per cent, is the top gainer whereas IndusInd Bank, down by 1.3 per cent, is the top loser.
The public sector banks are relatively bullish so far today. Nifty PSU Bank index is up 0.3 per cent whereas Nifty Private Bank has lost 0.7 per cent.
Bank Nifty futures
The August expiry futures of Bank Nifty opened the day with a gap-down at 43,975 versus previous session’s close of 44,234. It is currently hovering around 43,990.
The contract is now trading in the support band of 43,870-44,000. If it rebounds from here, it can rally to 44,200, a resistance. Subsequent resistance is at 44,400. Note that only a decisive breakout of 44,400 can result in the trend turning bullish.
Also read: Nifty prediction today – August 16, 2023: Index shows bearish inclination
On the other hand, if Bank Nifty futures fall below 43,870, which is the likely scenario given the prevailing sentiment, it can see a fall to 43,500 or even to 43,000.
Trading strategy
Stay on the side-lines for now and short Bank Nifty futures if it falls below 43,870. Target and stop-loss can be at 43,500 and 44,025, respectively.
Supports: 43,870 and 43,500
Resistances: 44,200 and 44,400
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