Bank Nifty began today’s session lower at 49,427 versus yesterday’s close of 49,504. It fell after opening and is now hovering around 49,000, losing 1 per cent so far today.

The advance/decline ratio stands at 2/10. IndusInd Bank and Punjab National Bank, down 2.9 and 2.3 per cent respectively, are the top losers.

AU Small Finance Bank (up 0.5 per cent) and HDFC Bank (up by a marginal 0.1 per cent) are the only gainers in Bank Nifty index.

Nifty PSU Bank is down 1.9 per cent and Nifty Private Bank has lost 1.1 per cent. Therefore, broadly, the public sector banks are experiencing higher downward pressure when compared to the private banks.

Bank Nifty futures

Bank Nifty futures (January contract) opened today’s session lower at 49,423 against yesterday’s close of 49,787. If slipped further after opening and is now trading at 49,200, down 1.1 per cent.

The chart indicates strong downward momentum. So, there is a good chance that Bank Nifty futures can fall further. 

From the current level, the nearest support can be seen at 49,000. Subsequent support is at 48,500. Note that 48,800 is a minor support.

On the other hand, if Bank Nifty futures can recover, it will face resistance at 50,000. A rally beyond this is less likely.

Broadly, there might be a minor recovery from the current level of 49,200, probably to 49,500. Post this, we can expect another leg of downtrend.

Trading strategy

Short Bank Nifty futures if it rises to 49,500. Place a stop-loss at 49,800. When the contract slips to 49,000, revise the stop-loss to 49,300. Book profits at 48,800.

Supports: 48,800 and 48,500

Resistance: 49,500 and 50,000