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Bank Nifty opened today’s session higher at 53,236 versus yesterday’s close of 53,038. The index is now trading at 53,140, up 0.2 per cent.
The advance/decline ratio stands at 7/5, giving the index a positive bias. Punjab National Bank, up 0.9 per cent, is the top gainer whereas AU Small Finance Bank, down 1.1 per cent, is the top loser.
While the Nifty Private Bank index has gained 0.2 per cent, Nifty PSU Bank is up 0.5 per cent so far today. So, broadly, the public sector banks seem to be outperforming the private peers.
Bank Nifty futures
Bank Nifty futures (September contract) opened today’s session lower at 53,325 versus yesterday’s close of 53,178. It is now trading at 53,220, up 0.1 per cent.
The price action is positive and the likelihood of a rally from here is high. There is a potential for Bank Nifty futures to touch 53,700. But this might not happen today and might take a few more sessions.
On the other hand, if the contract falls from here, it can find support at 53,000. Subsequent intraday support is at 52,800.
Trading strategy
Go long now at 53,220 and accumulate at 53,000. Place initial stop-loss at 52,700. When the contract hits 53,500, revise the stop-loss to 53,200. Exit at 53,700.
Supports: 53,000 and 52,800
Resistance: 53,700 and 54,000
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