Bank Nifty futures (46,900)

Bank Nifty began today’s session lower at 46,735.40 versus Wednesday’s close of 46,834.55. It has further dipped to 46,650, a cumulative 0.4 per cent below the previous close.

The breadth of the index is giving a considerable bearish bias as it stands at 2/10. Kotak Mahindra Bank, up 0.45 per cent and IndusInd bank, up 0.1 per cent, are the two stocks in the green. On the other hand, IDFC First Bank, down 3.3 per cent, is the top loser.

Nifty PSU bank and Nifty Private bank index are down 0.3 per cent each as both public and private sector banks are largely facing downward pressure today.

Bank Nifty futures

Bank Nifty futures (December expiry) opened today’s session with a gap-down at 46,898 versus 46,926.20. It is now trading at 46,900, down 0.1 per cent after the initial hour of trade.

Also read: Nifty prediction today – Dec 7, 2023: Momentum cools down, a minor corrective fall possible 

The chart shows the contract saw an hourly candle close below 46,850 although it has now recovered to 46,900. A close below 46,850 has increased the probability of further fall. The nearest support can be spotted at 46,400 and 46,200.

If Bank Nifty futures recover from the current level and rallies above 46,850, it can extend the up move to 47,050, a resistance. A move above this hurdle will turn the bias bullish. Subsequent resistance is at 47,400. 

Trading strategy                           

Although Bank Nifty futures show bearish inclination, the overall trend is bullish. So, risk averse traders can stay away for now.

Participants with higher risk appetite can short Bank Nifty futures now at 46,900. Target and stop-loss can be at 46,500 and 47,100, respectively.

Supports: 46,400 and 46,200

Resistances: 47,050 and 47,400