Bank Nifty opened today’s session with a gap-down at 53,201 against yesterday’s close of 53,391. But it has recovered to near yesterday’s closing level by the end of the first hour of today’s trade.

The advance/decline ratio of Bank Nifty stands at 5/7, giving the index a slight bearish bias. AU Small Finance Bank, up 0.7 per cent, is the top gainer. Canara Bank, down nearly 1 per cent, is the top loser.

Nifty PSU Bank, down nearly 0.8 per cent, is facing higher selling pressure than Nifty Private Bank, which is flat now. So, broadly, the private sector banks are outperforming the public sector peers.

Bank Nifty futures

Bank Nifty futures (December contract), like the underlying, began today’s session lower at 53,400 against yesterday’s close of 53,559. It is now hovering around 53,550.

So far, the support at 53,400 stays valid and so, the bias will remain bullish. On the back of this, if Bank Nifty futures rallies and surpasses the nearest barrier at 53,750, it will confirm a triangle pattern, a positive sign.

A breakout of 53,400 can lead to a rally towards 54,250. A move beyond 54,250 can lift Bank Nifty futures to 55,000 over the next few sessions.

On the other hand, if the contract declines below the base of 53,400, it can fall further. Nearest potential support below 53,400 are at 53,000 and 52,750.

Considering the above factors, the price band between 53,400 and 53,750 is a region of uncertainty and so, new trades are not recommended.

Trading strategy

Go long if Bank Nifty futures (December) breaks out of 53,750. Target and stop-loss can be 54,250 and 53,500 respectively.

Supports: 53,400 and 53,000

Resistance: 53,750 and 54,250