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Bank Nifty began Thursday’s session lower at 51,104 versus yesterday’s close of 51,144. But the index has recovered and has now moved up to 51,250, up 0.2 per cent.
The advances/ declines ratio of the index stands at 8/4, showing some bullish bias. ICICI Bank, up 0.7 per cent, is the top gainer; Bandhan Bank, down 1.3 per cent, is the top loser.
Nifty Private Bank is up 0.15 per cent compared to Nifty PSU Bank, which is down 0.3 per cent. Therefore, broadly, the private banks seem to be doing relatively better.
Bank Nifty futures
Bank Nifty futures (September contract) opened today’s session at 51,395 versus yesterday’s close of 51,429. It is now trading at 51,520, up 0.2 per cent.
While the contract remaining above 51,200 is a positive sign, the bears are resisting the contract from surpassing 51,650. Consequently, over the last few sessions, Bank Nifty futures has been oscillating between 51,200 and 51,650.
If the contract breaks out of 51,650, it can quickly rally to 52,800. But if the support at 51,200 is breached, it can drop to 51,000, its nearest support. The downswing might even extend to 50,200.
Trading strategy
Stay out until the range of 51,200-51,650 is breached. Fresh positions can be initiated along the direction of the break of this range.
Supports: 51,000 and 50,200
Resistance: 52,800 and 53,250
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