Nifty Bank index opened today’s session lower at 53,660 compared to yesterday’s close of 53,820. However, it recovered after opening and is now at 54,040, up 0.4 per cent so far today.
The advance/decline ratio stands at 9/3, showing a bullish bias. Kotak Mahindra Bank (up 1.5 per cent) is the top gainer followed by IDFC First Bank (up 1.2 per cent).
On the other hand, AU Small Finance Bank (down about 1 per cent) and Bank of Baroda (down 0.15 per cent) are the top losers.
Nifty Private Bank has advanced 0.8 per cent whereas Nifty PSU Bank is flat so far today. Therefore, the gain in Nifty Bank is driven by the private banks, which are outperforming their public sector peers.
Nifty Bank futures
Although the underlying Nifty Bank began today’s session with a gap-down, the September futures of the index opened marginally higher at 54,284 versus yesterday’s close of 54,259. It extended the upside and is now trading at 54,475, up 0.4 per cent.
Although the broader trend is down, the contract has bounced off the support at 54,200. From the current level, it can extend the upswing to 54,800, a potential resistance. Above this, the nearest barrier is at 55,000.
On the other hand, if the contract starts to decline and falls below the support at 54,200, it can extend the downswing to 53,800. Support below 53,800 is at 53,500.
Overall, as it stands, if Nifty Bank futures surpasses 54,500, it can extend the rally to 54,800. Otherwise, it can retest the support at 54,200 or even fall to 54,000.
Trade strategy
Stay out for now. Go long on Nifty Bank futures (September) if it breaks out of 54,500. Target and stop-loss can be 54,800 and 54,350 respectively.
Supports: 54,200 and 54,000
Resistances: 54,800 and 55,000
Published on August 29, 2025
