Bank Nifty has begun the week on a weak note. After opening at 44,057.80 against Friday’s close of 44,360.60, it is now trading around 44,000, down 0.8 per cent.

The advance/decline ratio of Bank Nifty stands at 1/11 showing a bearish inclination. While IndusInd Bank, up 0.3 per cent, is the only gainer, Punjab National Bank, down 3 per cent, is the top loser.

Broadly, both public sector and private sector banks are in the red. But relatively, private banks are better— Nifty Private bank index is down 0.7 per cent when compared with Nifty PSU Bank index which has lost 1.9 per cent.

While the trend has been bearish in recent weeks, the index is approaching a crucial support. 

There is a chance for Bank Nifty to rebound from the support at 43,700. However, a breach of this can intensify the sell-off potentially leading to another leg of downtrend.

Bank Nifty futures

The October Bank Nifty futures opened today’s session lower at 44,205 against Friday’s close of 44,510.20. It is currently trading at 44,100, down 0.9 per cent.

Like the key support at 43,700 for the underlying Bank Nifty index, Bank Nifty futures has a strong support at 44,000. So, the contract might bounce off this level. 

If there is a rally from the current levels, Bank Nifty futures can face resistance between 44,350 and 44,500. A breakout of 44,500 can lead to an upswing to 44,650.

On the other hand, a decisive breach of 44,000 can drag the contract to 43,500.

Trading strategy

The trend is bearish now. However, Bank Nifty and Bank Nifty futures has a support which can arrest the fall. But that does not guarantee a rally today. Hence, for intraday, we suggest staying out.

Supports: 44,000 and 43,500

Resistances: 44,350 and 44,500

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