Bank Nifty began today’s session lower at 48,960 versus yesterday’s close of 49,278. It dropped further after opening and is now hovering around 48,360, losing 1.9 per cent so far today.

All 12 stocks in Bank Nifty have depreciated so far, indicating a strong bearish inclination. Axis Bank and Kotak Mahindra Bank are the top losers, down 6 and 2.4 per cent, respectively. 

Nifty PSU Bank is down 0.6 per cent whereas Nifty Private Bank has lost 2.6 per cent. Therefore, broadly, the private sector banks are experiencing higher selling pressure than the public sector banks.

Bank Nifty futures

Bank Nifty futures (January contract) opened today’s session with a gap-down at 49,201 against yesterday’s close of 49,444. It is now trading at 48,430, down 2 per cent.

The contract has now slipped below the support at 48,650. So, the chances for a further decline is high. From the current level of 48,430, the nearest support levels are at 48,200 and 48,000. A breach of the latter can drag the contract to 47,500.

But if Bank Nifty futures rises from here, it will face resistance at 48,650 and 49,200. Resistance above 49,200 is at 49,650.

Trading strategy

Short Bank Nifty futures now at 48,430 and 48,600. Place stop-loss at 48,800. Book profits at 48,000.

Supports: 48,200 and 48,000

Resistance: 48,650 and 49,200