Bank Nifty opened today’s session almost flat at 52,273 versus yesterday’s close of 52,271. It moved up a little after opening and is now hovering around 52,320, up 0.1 per cent.
The advance/decline ratio of the index stands at 7/5, giving it a bullish tilt. Axis Bank is the top gainer by advancing 2.1 per cent whereas Kotak Mahindra Bank, down 0.7 per cent, is the top loser.
Nifty PSU Bank is up 0.3 per cent whereas Nifty Private Bank has gained 0.15 per cent. Thus, the public sector banks are broadly outperforming their private sector peers.
Bank Nifty futures
Bank Nifty futures (July contract) opened today’s session at 52,466 versus yesterday’s close of 52,439. It is currently hovering around 52,410.
The contract has its nearest support and resistance at 52,250 and 52,600. Only a breach of either of these levels can give us a strong clue about the intraday trend.
A breakout of 52,600 can lead to an upswing to 53,270 today. On the other hand, a breach of the support at 52,250 can drag the contract to 51,900 and even to 51,400.
Therefore, as it stands, the next leg of trend depends on along which direction Bank Nifty futures comes out of the 52,250-52,600 range.
Trading strategy
Bank Nifty futures are trading in a zone where the intraday trend is uncertain. Therefore, traders can stay out for now. Initiate trade along the direction of the break of the 52,250-52,600 range.
Supports: 52,250 and 51,900
Resistance: 52,600 and 53,270