Bank Nifty index opened today’s session with a gap-up at 45,740 versus yesterday’s close of 45,651. It is currently trading at around 45,685, largely flat for the day until now.
That said, the advance/decline ratio shows a slight positive bias as it stands at 7/5. Among the components of the index, Bandhan Bank, up by 1.8 per cent, is the top gainer whereas IndusInd Bank, down by 0.4 per cent, is the top loser.
While Nifty PSU Bank index is up by 0.35 per cent, Nifty Private Bank index is up by 0.25 per cent.
Bank Nifty futures
The August expiry futures of Bank Nifty opened the day higher at 45,903 versus Monday’s close of 45,861. It is currently trading around 45,860.
The contract is facing a strong hurdle at 45,900. If this is breached, the contract might rally to 46,200 or even to 46,400 before the end of the day. However, if there is a decline off this level, Bank Nifty futures can find support at 45,500 and 45,350.
Trading strategy
Since the contract is near a resistance, traders can consider going short at the current level of 45,860. Place a tight stop-loss at 46,050. Exit at 45,500.
In case the contract rallies past 45,900 and hits the stop-loss of the above trade at 46,050, we can assume that it has decisively breached the resistance of 45,900. In such a case consider going long. That is, buy Bank Nifty futures with stop-loss at 45,850. Liquidate the longs at 46,400.
Supports: 45,500 and 45,350
Resistance: 45,900 and 46,400