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Bank Nifty began today’s session with a gap-up at 51,544 versus yesterday’s close of 51,400. But it has moderated back to yesterday’s closing level and is now hovering around 51,400.
The advance/decline ratio of the index stands at 6/6. Bandhan Bank and AU Small Finance Bank, up 2.4 and 2 per cent respectively, are the top gainers. Bank of Baroda and Punjab National Bank are the biggest losers by depreciating 1 and 0.7 per cent respectively.
Nifty PSU Bank has lost 0.3 per cent so far whereas Nifty Private Bank is flat. So, broadly, the public sector banks are underperforming the private peers so far today.
Bank Nifty futures
Bank Nifty futures (September contract) opened today’s session higher at 51,675 versus yesterday’s close of 51,608. It is now trading at 51,655, up 0.1 per cent.
The chart shows that Bank Nifty futures is now stuck between 51,520 and 51,750. Just below 51,520 is another support at 51,350. So, the next leg of trend depends on which among 51,350 and 51,750 is breached first.
A breakout of 51,750 can lead to a swift rally to 52,000 and then to 52,200. Whereas a break below the support at 51,350 can result in Bank Nifty futures extending the downswing to 50,800 or even to 50,000.
Trading strategy
Stay out. Buy Bank Nifty futures if it breaks out of 51,750. Target and stop-loss can be at 52,200 and 51,480 respectively.
Supports: 51,520 and 51,350
Resistances: 51,750 and 52,000
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