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Home News Bank Nifty Outlook for September 6, 2023: Potential Rebound Supported by Key Levels

Bank Nifty Outlook for September 6, 2023: Potential Rebound Supported by Key Levels

by sun

Bank Nifty commenced Wednesday’s trading session with a marginal dip, opening at 44,494.65 compared to the previous day’s closing figure of 44,532.15. However, it has since rebounded to reach 44,540. The index is currently positioned above crucial levels, indicating a prevailing bullish sentiment.

However, it’s noteworthy that the advances/declines ratio stands at 6/6, suggesting a balanced market sentiment. HDFC Bank leads the gainers with a 0.7 percent increase, while IndusInd Bank is the top loser, experiencing a 0.6 percent decline.

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Both the Nifty PSU Bank and Nifty Private Bank indices are relatively flat in today’s early trading.

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Bank Nifty Futures

In contrast to the underlying Bank Nifty, the September futures of the index initiated trading with a slight drop, opening at 44,710, as opposed to the previous day’s closing level of 44,766. It has since edged up to 44,700.

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The critical support level at 44,640 has proven resilient, and as long as it remains intact, the likelihood of a substantial rally remains high. While the range between 44,800 and 44,850 may pose as a resistance zone, we anticipate the contract to surpass this threshold and aim for the 45,000 mark. A breach of this level could propel the contract to 45,200.

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However, should Bank Nifty futures dip below the support at 44,640, a retracement to 44,500 could be on the horizon, although such a scenario is less likely for today.

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Trading Strategy

Traders are encouraged to consider purchasing Bank Nifty futures at the current level of 44,700. In the event of a price dip to 44,570, additional long positions can be established. It is advisable to place the initial stop-loss at 44,480.

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Upon the contract’s ascent beyond 44,800, traders should tighten the stop-loss to 44,640 and contemplate booking profits at the 45,000 level.

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