Bank Nifty began today’s session with a gap-up at 51,437 versus yesterday’s close of 51,153. The index moderated after opening and is now at 51,340, up nearly 0.4 per cent.
The advance/decline ratio of the index stands at 11/1, showing strong bullish bias. AU Small Finance Bank and Bandhan Bank, up 2.2 per cent each, are the top gainers; ICICI Bank, down by a marginal 0.1 per cent, is the only stock down in the index.
Nifty PSU Bank is up 0.9 per cent compared to Nifty Private Bank, which has gained 0.4 per cent. Therefore, broadly, the public sector banks seem to be doing relatively better.
Bank Nifty futures
Bank Nifty futures (September contract) opened today’s session almost flat at 51,501 versus yesterday’s close of 51,491. It is now trading at 51,600, up 0.25 per cent.
After trading briefly above the resistance at 51,650, the contract has slipped back below this level. If the bulls regain traction and lead to a decisive breakout of 51,650, we can witness a swift rally to 52,800 over a few sessions.
However, if there is decline from the current level, Bank Nifty futures can find support at 51,350 and 51,200. As it stands, a fall below 51,200 is unlikely to happen.
Trading strategy
Wait for now and buy Bank Nifty futures if it decisively breaches the barrier at 51,650. Target and stop-loss for the short-term can be 52,800 and 51,200 respectively. After initiating the trade, when the contract surpasses 52,200, tighten the stop-loss to 51,800.
Supports: 51,350 and 51,200
Resistance: 52,800 and 53,250