Bank Nifty opened today’s session higher at 48,895 versus yesterday’s close of 48,682. But the index gave up the initial gains and is currently trading at 48,650.
AU Small Finance Bank is the top gainer by advancing 1.2 per cent whereas Kotak Mahindra Bank, down 1 per cent, is the top loser.
Broadly, the public sector banks are facing considerable sell-off today. Nifty PSU Bank has lost about 0.9 per cent whereas Nifty Private Bank is flat.
Bank Nifty futures
Bank Nifty futures (June contract) opened today’s session with a gap-up at 49,200 as against yesterday’s close of 49,037. It is now trading around 48,975, down 0.1 per cent.
The chart shows that Bank Nifty futures are oscillating between 48,900 and 49,300. As it stands there are no signs of a trend in either direction. It depends on the direction of the break of this price band.
If Bank Nifty futures breaks out of 49,300, it can rally to 50,000 quickly. On the other hand, if Bank Nifty futures slip below 48,900, it can fall to 48,500, a support. A breach of this can intensify the sell-off where the contract can decline to 48,000.
Trading strategy
Stay on the fence and take trade along the direction of the break of the 48,900-49,300 range.
Supports: 48,900 and 48,500
Resistances: 49,300 and 50,000
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