Bank Nifty began today’s session flat at 50,202. After marking a high of 50,247 initially, it has now fallen to 49,815, down 0.75 per cent.

Except Axis Bank, which has gained 0.3 per cent so far today, all other stocks in Bank Nifty are down. HDFC Bank and The Federal Bank, down 1.3 and 1 per cent, respectively, are the top losers.

Both Nifty PSU Bank and Nifty Private Bank have lost about 0.6 per cent so far today.

Bank Nifty futures

Bank Nifty futures (January contract) opened today’s session lower at 50,390 against yesterday’s close of 50,415. It declined after opening and is currently hovering around 50,000, down 0.8 per cent.

Given the current conditions, Bank Nifty futures is likely to breach the support at 50,000. In such a case, it can drop to 49,500 and 49,000 quickly.

On the other hand, if the contract rebounds off the base at 50,000, which is less likely, it can rise to 50,500, a resistance. Subsequent barrier is at 51,000.

Trading strategy

Short Bank Nifty futures now at 50,000 and place a stop-loss at 50,300. When the contract slips to 49,500, revise the stop-loss to 49,800. Book profits at 49,200.

Supports: 49,500 and 49,000

Resistance: 50,500 and 51,000