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Bank Nifty futures (44,380)
Bank Nifty has begun the session with a gap-down at 44,322 against Thursday’s close of 44,599. It is now hovering around 44,260, down 0.8 per cent.
The negative bias is substantiated by the advance/decline ratio of the index, which now stands at 2/10. IndusInd Bank, up 1.7 per cent, and Federal Bank, up 1.4 per cent, are the only two stocks in the index that are in the green.
On the other hand, Axis Bank and Bank of Baroda, down 2.3 per cent each, have lost the most so far.
Also read: Nifty Prediction Today—October 13, 2023: Stay out of the market
Public sector banks have been facing the wrath of bears since morning. While Nifty PSU Bank index has lost 1.5 per cent, Nifty Private Bank has lost 0.4 per cent.
Bank Nifty futures
The October Bank Nifty futures opened today’s session lower at 44,450 versus yesterday’s close of 44,748. It is currently trading around 44,380, down 0.8 per cent.
The contract has slipped below a support at 44,500. However, it is now trading above another key support at 44,350.
If the support at 44,350 is breached, we are likely to see a quick fall to 44,000. A breach of this level will open the door for a fall to 43,500.
On the other hand, if Bank Nifty futures bounce off the support at 44,350 and manages to move past 44,500, which is now a potential hurdle, it can extend the upside to 45,000. But given the price action since morning and the broader market sentiment, the probability of such an upside is very low.
Trade strategy
Since the support at 44,350 stays true, stay out for now.
Initiate fresh short positions if the above-mentioned support is breached. Target and stop-loss for intraday can be 44,000 and 44,500, respectively.
Supports: 44,350 and 44,000
Resistances: 44,500 and 45,000
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