Bank Nifty opened today’s session lower at 43,598.85 versus Monday’s close of 43,619.40. The index is now at 43,460, down 0.4 per cent.

Even though the advance/decline ratio, at 8/4, shows a bullish bias, the index remains below yesterday’s closing level.

The private sector banks, which are largely down so far today, are weighing on Bank Nifty. Nifty Private bank index is down nearly 0.4 per cent whereas Nifty PSU bank index is up 0.5 per cent.

Punjab National Bank, up 1.7 per cent, is the top gainer whereas ICICI Bank, down about 1 per cent, is the top loser.

Bank Nifty futures

Bank Nifty futures (November expiry) opened today’s session higher at 43,855.30 as against yesterday’s close of 43,839.80. This is despite the underlying index opening lower. However, the contract fell after opening. It is currently trading at 43,750, down 0.2 per cent.

The contract is now trading between the key levels of 43,600 and 43,870. So, the next leg of trend depends on the direction of the break of the 43,600-43,870 range.

A breakout of 43,870 can lift the contract to 44,250. On the other hand, if the contract falls below 43,600, it is likely to extend the fall to 43,350.

Trading strategy

Stay out for now and initiate fresh positions along the direction of the break of the 43,600-43,870 price band.

Supports: 43,600 and 43,350

Resistance: 43,870 and 44,250

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