Bank Nifty opened today’s session with a gap-down at 52,391 versus yesterday’s close of 52,426. But the index recovered and is now hovering around 52,560, up 0.25 per cent.
Punjab National Bank, up 2 per cent, is the top gainer whereas IndusInd Bank, down 0.5 per cent, is the top loser.
Broadly, the public sector banks are outperforming their private sector peers. Therefore, Nifty PSU Bank has advanced 1.9 per cent whereas Nifty Private Bank is up 0.2 per cent.
Bank Nifty futures
Bank Nifty futures (July contract) opened today’s session lower at 52,500 versus yesterday’s close of 52,561. But it recovered and is now trading around 52,640, up nearly 0.2 per cent. Thus, it continues to trade within the range of 52,300-53,300.
There is a trendline support that coincides at 52,300, making the price level a strong base. So, the likelihood of a rebound from this level is high. In such a case, it can quickly retest the resistance at 53,300.
On the other hand, if the support at 52,300 is invalidated, the downswing can extend to 51,400.
That said, if Bank Nifty futures rally from the current level of 52,640 and breaks out of 53,300, it can establish another leg of uptrend, which can potentially lift the price to 54,000 and then to 55,000 in the short-term.
Trading strategy
Buy Bank Nifty futures if it drops to 52,300. Target and stop-loss can be at 53,300 and 51,800 respectively.
Supports: 52,300 and 52,000
Resistance: 53,300 and 54,000