Bank Nifty began today’s session with a gap-up at 50,417 against yesterday’s close of 50,368. The index rose further after opening and is currently hovering around 50,770, up 0.8 per cent.
In line with the positive inclination, all 12 stocks in the index have appreciated. Bank of Baroda and IndusInd Bank are the top gainers, up 2 and 1.7 per cent, respectively.
Nifty PSU Bank and Nifty Private Bank have gained nearly 0.9 per cent each so far and, as it stands, the banking stocks are broadly doing well so far today.
Bank Nifty futures
Bank Nifty futures (August contract) opened today’s session higher at 50,555 versus yesterday’s close of 50,485. It is now trading at around 50,820, up 0.7 per cent.
The price action is encouraging for the bulls. It is highly likely that the nearest barrier at 51,000 will be breached soon. Once this occurs, Bank Nifty futures can quickly rally to 52,000.
On the other hand, if the bulls lose traction, leading to a decline, Nifty futures can find support at 50,700 and 50,450. A drop below the latter is unlikely, given the upward momentum.
Trading strategy
Buy Bank Nifty futures at 50,820 and add longs if the price dips to 50,600. Keep stop-loss at 50,450 initially.
When the contract crosses 51,000, revise the stop-loss to 50,700. Tighten the stop-loss further to 51,200 when the price hits 51,500. Book profits at 51,800.
A rally to 52,000 might take a few sessions. So, traders can hold on to the long trades but stick to the recommended stop-loss strictly.
Supports: 50,700 and 50,450
Resistance: 51,000 and 52,000
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.