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Bank Nifty index opened at 44,125 today versus yesterday’s close of 44,002. It has moderated a bit after opening and is hovering around 44,080, up by one-fifth of a per cent after the first hour of trade.
At 9/3, the advance/decline ratio of the index gives it a bullish bias. AU Small Finance Bank is the best performer so far today, appreciating by 1.8 per cent. On the other hand, IndusInd Bank, down by 0.2 per cent, is the top loser.
Notably, both Nifty PSU Bank and Nifty Private Bank are up by 0.25 per cent.
Bank Nifty futures
The August expiry futures of Bank Nifty opened the day higher at 44,159 against Monday’s close of 44,114. It is currently trading at around 44,160.
Over the last few sessions, the bears have lost momentum and the support band of 43,870-44,000 holds strong. Hence, there may be no further downside
However, Bank Nifty futures should break out of the resistance at 44,360 to signal a bullish reversal in trend. In such a case, although 44,500 is a minor resistance, we are likely to see the contract rising to the 44,900-45,000 price band.
Trading strategy
In spite of the bullish signs, Bank Nifty futures is yet to see a breakout. Also, the risk-reward ratio is not favourable for fresh longs.
Hence, traders can stay away for now and consider longs if the contract breaks out of the hurdle at 44,360. Target and stop-loss can be at 44,900 and 44,150.
Supports: 43,870 and 43,500
Resistance: 44,360 and 44,900
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