Nifty Bank index began today’s session with a gap-down at 55,149 versus yesterday’s close of 56,083. However, it recovered after opening and is currently hovering around 55,580, reducing the intraday loss to 0.9 per cent now.
All 12 stocks in the Nifty Bank index are in the red. State Bank of India (down 1.6 per cent) is the top loser followed by Kotak Mahindra Bank (down 1.5 per cent) and AU Small Finance Bank (down 1.4 per cent)
Nifty PSU Bank and Nifty Private Bank are down about 1 per cent each.
Nifty Bank futures
The June expiry Nifty Bank futures began today’s session lower at 55,556 against yesterday’s close of 56,270. It is now trading at 55,700, down 1 per cent.
The contract rebounded from the intraday low of 55,351 it made during today’s first hour of trade. Although it has now covered up some losses, Nifty Bank futures (Jun) may not be able to recoup all the losses.
There are resistance levels ahead with the nearest ones at 55,800 and 56,000. Subsequent barrier is at 56,250.
In case the bears regain traction and Nifty Bank futures (Jun) resume the decline, it may retest today’s low of 55,351. A fall below this can drag the contract further to 55,000.
Trade strategy
The volatility is higher and given the prevailing price action so far today, there is no clarity with respect to the intraday trend. Hence, we suggest traders stay out.
Supports: 55,350 and 55,000
Resistances: 55,800 and 56,000