Bank Nifty opened today’s session higher at 51,927 against yesterday’s close of 51,783. However, it fell after the opening and is currently trading around 51,415, down 0.7 per cent.
The advance/decline ratio now stands at 3/9. Bandhan Bank, up nearly 0.8 per cent, is the top gainer whereas HDFC Bank, down 1.4 per cent, is the top loser.
Nifty Private Bank index has lost nearly 0.7 per cent whereas Nifty PSU Bank index is down 0.6 per cent.
Bank Nifty futures
Bank Nifty futures (June contract) began today’s session with a gap-up at 51,821 versus yesterday’s close of 51,755. It is now trading at 51,520, down about 0.5 per cent.
Despite the sell-off, the contract is trading about support at 51,200 and 51,000. The intraday outlook will turn bearish only if the contract slips below 51,000.
We expect Bank Nifty futures to recover from here and rise to 52,000, a resistance. Subsequent resistance is at 52,500.
On the other hand, if the contract falls below 51,000, it can see a downswing to 50,500 and then potentially to 50,000.
That said, as there are supports ahead, one can consider longs on Bank Nifty futures.
Trading strategy
Buy Bank Nifty futures when its price moderated to 51,200. Target and stop-loss can be 52,000 and 50,800 respectively.
Supports: 51,200 and 51,000
Resistance: 52,000 and 52,500