Bank Nifty began today’s session at 50,991 versus Friday’s close of 50,989. After marking a high of 51,026 initially, it has now fallen to 50,470, down 1 per cent.

Except ICICI Bank, which has gained 0.3 per cent so far today, all other stocks in Bank Nifty are down. Bank of Baroda and Punjab National Bank, up 3.9 and 2.9 per cent, respectively, are the top losers.

Nifty PSU Bank has declined by 2.6 per cent whereas Nifty Private Bank has lost nearly 1 per cent. So, broadly, the public sector banks are facing higher selling pressure when compared to their private peers.

• Also read: Stocks that will see action today: January 6, 2024

Bank Nifty futures

Bank Nifty futures (January contract) opened today’s session lower at 51,185 against Friday’s close of 51,259. It declined sharply after opening and is currently trading at 50,700, down 1.1 per cent.

As the contract has slipped below the support at 51,000, the downtrend could gain more momentum, potentially dragging Bank Nifty futures to 50,500 and then to 50,000.

On the other hand, if the contract recovers and moves past 51,000, it can extend the upswing to 52,000, a resistance. Subsequent resistance is at 52,300.

Overall, the bias is clearly bearish and so, the probability of a fall is higher than a rally from the current level. 

Trading strategy

Short Bank Nifty futures now at 50,700 and on a rally to 51,000. Place stop-loss at 51,300. When the contract touches 50,300, revise the stop-loss to 50,600. Exit the shorts at 50,000.

Supports: 50,500 and 50,000

Resistances: 51,000 and 52,000