Bank Nifty began today’s session at 52,351 versus Friday’s close of 52,342. The index has inched up after opening and is currently trading around 52,430, up 0.2 per cent so far today.
The advance/decline ratio gives the index a bullish bias as it stands at 7/5. HDFC Bank is the top gainer by advancing 0.7 per cent. On the other hand, State Bank of India, down 0.6 per cent, is the top loser.
While Nifty Private Bank index is up 0.2 per cent, Nifty PSU Bank index has lost 0.4 per cent so far today. Thus, the private banks are broadly outperforming their public sector peers.
Bank Nifty futures
Bank Nifty futures (July contract) opened today’s session almost flat at 52,524 versus Friday’s close of 52,530. It is now hovering around 52,620, up 0.2 per cent.
Although the broader trend is bullish, there is room for the contract to see a minor correction from here. Bank Nifty futures could drop to 52,000 before witnessing the next leg of trend.
Eventually, we expect the contract to resume the uptrend and touch 55,000 in the near-term. Notable resistance levels are at 55,000 and 57,000. But a breach of the support at 52,000 can drag Bank Nifty futures further to 51,500.
Trading strategy
Buy Bank Nifty futures if it dips to 52,000. Place stop-loss at 50,500. When the contract touches 54,000 after the trade is initiated, alter the stop-loss to 52,800. Book profits at 55,000.
Supports: 52,350 and 52,000
Resistances: 53,000 and 55,000