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Bank Nifty opened today’s session higher at 51,713 against yesterday’s close of 51,398. It is now at 51,450, up 0.1 per cent so far today.
The advance/decline ratio now stands at 8/4. Bandhan Bank, up nearly 3 per cent, is the top gainer whereas State Bank of India, down 0.6 per cent, is the top loser.
Private banks have been outperforming their public sector peers so far today. Therefore, Nifty Private Bank index is up 0.3 per cent whereas Nifty PSU Bank index is up 0.1 per cent.
Bank Nifty futures
Bank Nifty futures (June contract) began today’s session with a gap-up at 51,631 versus yesterday’s close of 51,353. It is now trading at 51,430, up 0.15 per cent.
The contract sustains above the 51,000-mark and so, the probability of a rally from here is high. We expect Bank Nifty futures to hit 52,000 soon. Resistance above 52,000 is at 52,500.
On the other hand, if the contract falls, it can find support at 51,000. Just below this is a rising trendline support, which can provide support at around 50,700. So, the price band of 50,700-51,000 is a support.
Trading strategy
Buy Bank Nifty futures now at 51,430. Add longs if the contract dips to 51,000. Place stop-loss at 50,700. When the contract touches 51,800, alter the stop-loss to 51,500. Book profits at 52,000.
Supports: 51,000 and 50,700
Resistance: 52,000 and 52,500
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