Bank Nifty prediction today – Dec 21, 2023: Index might see a recovery

Posted on by

Bank Nifty opened lower today at 47,172.45 compared to Wednesday’s close of 47,445.30. The index is now around 47,280 down 0.3 per cent.

Interestingly, even though the index is down so far today, the advance/decline ratio stands at 8/4, giving it a bullish bias.

The negative return today is largely due to the weakness in the private banks. Nifty Private bank index has lost 0.7 per cent whereas Nifty PSU bank index up 0.25 per cent.

Within the index, Punjab National Bank, up 1.3 per cent, is the top gainer whereas Axis Bank, down 2.3 per cent, is the top loser.

Bank Nifty futures

Bank Nifty futures (December expiry) opened today’s session lower at 47,245 versus yesterday’s close of 47,480.55. It is now trading at around 47,350, down 0.25 per cent.

The first hourly candle of today shows a bullish pin bar on the chart. The contract bounced off the support at 47,000 to form this candlestick. Below this is another support at 46,700.

Until the above levels hold true, we cannot assume the trend to have turned bearish. If Bank Nifty futures rebound from the current level, it can face barrier between 47,700 and 47,800. Resistance above this is at 48,000.

Trading strategy                           

Since key supports stay valid, traders can consider longs on Bank Nifty futures at the current level of 47,350 and on a dip to 47,100. Target and stop-loss can be at 47,800 and 46,900 respectively.

Supports: 47,000 and 46,700

Resistance: 47,700 and 47,800