Bank Nifty began today’s session higher at 50,895 versus yesterday’s close of 50,686. The index inched up after opening and is now at 50,930, up 0.5 per cent at the end of the first hour of trade.

The advance/decline ratio of the index stands at 10/2. This is a bullish indication. Bandhan Bank, up 2.2 per cent, is the top performer. Kotak Mahindra Bank, down nearly 0.2 per cent, is the top loser.

Nifty PSU Bank and Nifty Private Bank have advanced about 0.5 per cent each so far. Broadly, the banking stocks seem to be facing upward pressure.

Bank Nifty futures

Bank Nifty futures (August contract) opened today’s session at 50,955 versus yesterday’s close of 50,807. It is now trading at 51,000, up nearly 0.4 per cent.

The price action is positive and there is a good chance for Bank Nifty futures to decisively break out of 51,000. In this case, the contract can see a quick rally to 52,000.

But in case there is a decline from the current level of 51,000, Bank Nifty futures can find support at 50,700 and 50,500.

Trading strategy

Buy Bank Nifty futures now at 51,000 with a stop-loss at 50,700.

Traders who initiated longs yesterday at 50,700 based on our suggestion can hold on to the trade. But move the stop-loss up from 50,450 to 50,700.

Going ahead, for both the cases above, tighten the stop-loss to 51,200 when the price hits 51,500. Book profits at 52,000.

Supports: 50,700 and 50,500

Resistance: 51,000 and 52,000

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