Bank Nifty prediction today – Oct 31, 2023: Testing a key support, traders wait for the break

Bank Nifty opened at 43,356.85 today as against yesterday’s close of 43,039.15. But it has given up the gains and is currently hovering around yesterday’s closing level.

Kotak Mahindra Bank, up 0.5 per cent, is the top gainer whereas IDFC First Bank, down 0.7 per cent, is the top loser.

Broadly within the banking space, the public sector banks seem to be doing good when compared to the private banks. Consequently, Nifty PSU Bank index is up 0.9 per cent and Nifty Private Bank index is down by a marginal 0.1 per cent.

• Also Read: Nifty prediction today – Oct 31, 2023: Index hits a wall, likely to resume fall 

Technically, the 200-day moving average of the Bank Nifty index lies near 43,200. This seems to be acting as a barrier as the index could not build on the gap-up open. Also, the trend has been bearish since mid-September.

Therefore, we are likely to see Bank Nifty and Bank Nifty futures fall from the current level.

Bank Nifty futures

Bank Nifty futures (November expiry) opened today’s session higher at 43,603 versus Monday’s close of 43,295.70. It then declined and is now trading at 43,180, down 0.3 per cent so far today.

Notably, the price region between 43,080 and 43,200 can provide some support for the contract. If there is a bounce off this level, Bank Nifty futures could retest 43,400 today.

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But if the contract slips below 43,080, it could see a swift fall to 42,680, the nearest notable support below 43,080. Below 42,680, there is support at 42,430.

Trading strategy

The trend is bearish. However, we suggest traders to stay on the side-lines for now since there is a support at 43,080.

Short Bank Nifty futures if it slips below the support at 43,080. Target and stop-loss can be at 42,680 and 43,230 respectively.

Supports: 43,080 and 42,680

Resistance: 43,350 and 43,500

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