Nifty Bank opened today’s session higher at 49,486 versus yesterday’s close of 49,360. The index is now trading at 49,150, down 0.4 per cent.
The advance/decline ratio of the index stands at 2/10, signalling a bearish bias. ICICI bank, up 0.7 per cent, is the top gainer. AU Small Finance Bank and Canara Bank, down 1.5 per cent each, are the top losers.
Nifty PSU Bank has lost 0.6 per cent so far today and Nifty Private Bank is down 0.2 per cent. Therefore, broadly, the public sector banks are facing higher selling pressure than their private peers.
Bank Nifty futures
Nifty Bank futures (February contract) opened today’s session at 49,705 against yesterday’s close of 49,571. It is now trading at 49,320, down 0.5 per cent.
The broader trend is bearish and Nifty Bank futures will retain the bearish bias so long as it trades below 50,000. Hence, the likelihood of further decline is high.
The contract can drop to 49,000 and then possibly to 48,600. On the other hand, if Nifty Bank futures rally, it will face resistance at 49,700 and 50,000.
Trading strategy
Short Nifty Bank futures now at 49,320 with a stop-loss at 49,700. Book profits at 48,600.
Supports: 49,000 and 48,600
Resistance: 49,700 and 50,000