Bank Nifty began today’s session slightly higher at 52,390 versus yesterday’s close of 52,302. It rallied after opening and is now at 52,640, up 0.65 per cent, thus outperforming the benchmark Nifty 50, so far.

The advance/decline ratio stands at 11/1, indicating a strong bullish inclination. Punjab National Bank, up 1.7 per cent, is the top gainer.

Whereas Federal Bank is the only index constituent that is down so far; it has lost 0.25 per cent at the end of the first hour of today’s session.

Nifty PSU Bank has rallied 1.4 per cent whereas Nifty Private Bank is up 0.5 per cent. So, broadly, the public sector banks are outperforming their private peers.

Bank Nifty futures

Bank Nifty futures (December contract) opened today’s session with a minor gap-up at 52,690 versus yesterday’s close of 52,617. It is now trading around 52,930, up 0.6 per cent.

Although 53,000 is a hurdle, given the prevailing price action, the uptrend seems to be strong and so, Bank Nifty futures is expected to surpass this level. It could touch 54,000 in the next few sessions.

However, if the contract falls from the current level of 52,930, it can find support at 52,800 and 52,720. Only a breach of 52,720 will turn the intraday trend bearish.

Trading strategy

Go long on Bank Nifty futures now at 52,930 and accumulate at 52,800. Place initial stop-loss at 52,650. When the contract touches 53,200, revise the stop-loss to 52,800. On a rally to 53,750, tighten the stop-loss to 53,500. Exit at 54,000.

Consider carrying this trade over the forthcoming session if neither target nor stop-loss is triggered today.

Supports: 52,800 and 52,720

Resistances: 53,000 and 54,000

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