Bank Nifty began today’s session slightly lower at 46,797.20 compared to yesterday’s close of 46,841.40. It has now moved up to 47,040, up 0.4 per cent.
The bullish tone is supported by the advance/decline ratio of Bank Nifty which currently stands at 9/3.
Bank of Baroda, up 1.5 per cent, is the top gainer whereas AU Small Finance Bank, down 1.2 per cent, has lost the most in the early trade today.
- Also read: Day trading guide for December 08, 2023: Intraday supports, resistances for Nifty50 stocks
Broadly, the private sector banks are outperforming their public sector peers today. Consequently, Nifty Private bank is up 0.6 per cent whereas Nifty PSU bank is up 0.3 per cent.
Bank Nifty futures
Unlike its underlying, Bank Nifty futures (December expiry) opened today’s session flat at 47,050.05 versus 47,047.15. It is now hovering around 47,215, up 0.35 per cent.
The contract has surpassed a barrier at 47,100 and the chart indicates that the price could rise to 47,500 today.
On the other hand, if Bank Nifty futures decline, 47,100 will henceforth provide support. Subsequent support can be found at 46,850.
Trading strategy
The price action is clearly bullish and so, traders can buy Bank Nifty futures now at 47,215. Add longs in case the price dips to 47,100. Place stop-loss at 46,900.
When the contract rises to 47,400, tighten the stop-loss to 47,200. Liquidate the longs at 47,500.
Supports: 47,100 and 46,850
Resistance: 47,500 and 47,800