Ness Bank is hoping to arrest losses today after falling for two consecutive sessions. The index opened at 43,996, almost unchanged from yesterday’s close of 43,989, but fell to a low of 43,830 in the first hour of trading. However, it has now recovered to 43,920.
Market breadth shows that bulls and bears are fighting fiercely, with a 6/6 ratio. Bandhan Bank was the biggest gainer, up 1.3 percent, while IDFC First Bank was the biggest loser, down 2.5 percent.
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The Nifty PSU Bank Index was flat while the Nifty Private Bank Index fell 0.25%.
Bank Nifty Futures
The September contract opened slightly lower at 44,269 points today, compared to yesterday’s close of 44,290 points. It is currently trading around 44,190 points, down 0.25%.
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The contract has a sizeable support zone between 44,000 and 44,100. If Bank Nifty futures rebound from this, a rally to 44,400 is likely. A break above this level could result in an upside extension to 44,575.
However, if Bank Nifty futures break below 44,000, the trend could turn bearish and we could see a quick drop towards 43,500 and then 43,000.
Trading straregy
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Consider new longs at the current level of 44,190 with an initial stop loss of 43,980. Tighten stops to 44,200 when the contract moves up to 44,400. Book profit is 44,550.
Number of people supported: 44,100 and 44,000
Resistance: 44,400 and 44,575
