Bank Nifty opened today’s session lower at 52,215 versus yesterday’s close of 52,397. But the index recovered and is now hovering around 52,625, up 0.4 per cent.
Supporting the strong bullish inclination, the advance/decline ratio stands at 11/1. State Bank of India and Bandhan Bank, up 1.4 per cent each, are the top gainers. Bank of Baroda, down 0.1 per cent, is the only loser.
Nifty PSU Bank index is up nearly 1 per cent, whereas the Nifty Private Bank index is up 0.45 per cent. Therefore, public sector banks are broadly outperforming their private peers today.
Bank Nifty futures
Bank Nifty futures (July contract) opened today’s session lower at 52,432 versus yesterday’s close of 52,529. It is currently trading around 52,710, up 0.35 per cent.
The contract bounced off support at 52,300 and saw a sharp rally in today’s early trade. However, it now faces a barrier at 52,800.
If 52,800 is breached, Bank Nifty futures can quickly rally to 53,300. A breach of this can lift the contract to 54,000.
But, if there is a decline from the current level, it can find intraday support at 52,500 and 52,300. A break below 52,300 can turn the bias bearish, which can lead to a fall to 51,500.
Trading strategy
Buy Bank Nifty futures only if it surpasses the resistance at 52,800. Target and stop-loss for intraday can be 53,300 and 52,580, respectively.
Supports: 52,500 and 52,300
Resistance: 52,800 and 53,300