Bank Nifty index began the day slightly higher at 45,689 versus Wednesday’s close of 45,669. It is currently trading around 45,730. The gain is largely due to the rally in public sector banks, which apparently is the best performing sectoral index so far today.
The advance/decline ratio of Bank Nifty stands at 7/5, showing a bullish bias. IndusInd bank, up by 0.9 per cent, is the top gainer whereas Bandhan Bank, down by 0.9 per cent, is the top loser.
As mentioned earlier, among the banking stocks, the public sector banks are the leaders. Consequently, Nifty PSU Bank, up by 1.3 per cent, has outperformed Nifty Private Bank, which is flat so far today.
Also read: Nifty prediction today – July 20, 2023: Trend remains up
Bank Nifty futures
The July expiry futures of Bank Nifty opened the day higher at 44,774 versus yesterday’s close of 44,718. It is currently trading at around 45,740.
As it stands, the probability of a rally is high. The contract could touch 46,000 today. On the other hand, if there is a decline, 45,700, a support, can arrest the decline. Subsequent support is at 45,600. A fall below 45,600 today is less likely.
Trading strategy
Even though the bias is bullish, the intraday price action so far shows that 45,780 is a resistance.
Therefore, go long once Bank Nifty futures break out of 45,780. Target and stop-loss can be at 46,000 and 45,670.
Supports: 45,700 and 45,600
Resistance: 45,780 and 46,000