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Bank Nifty opened today’s session a little lower at 51,384 versus yesterday’s close at 51,406. But the index recovered and now hovers around 51,600, up 0.4 per cent.
The breadth of the index gives it a bullish inclination at 11/1. Punjab National Bank, down 0.4 per cent, is the only loser. IDFC First Bank, up 1.5 per cent, and Bandhan Bank, up 1.2 per cent, are the top gainers.
Nifty Private Bank is up 0.5 per cent whereas Nifty PSU Bank is up by a marginal 0.1 per cent. Therefore, private banks are broadly outperforming their public sector peers.
Bank Nifty futures
Bank Nifty futures (August contract) opened today’s session slightly lower at 51,604 versus yesterday’s close at 51,654. The contract is now trading at around 51,765, up 0.2 per cent.
The price action shows that Bank Nifty futures is stuck between 51,530 and 52,000. Until these levels hold, the next trend will remain uncertain.
A breakout past 52,000 can take the contract to 52,500, its nearest resistance. A breach of 52,500 can lift the contract to 53,000. On the other hand, if Bank Nifty futures slips below 51,530, it can fall to 51,000, a support. Subsequent support is at 50,400.
Trading strategy
Stay out for now. Trade along the direction of the break beyond the 51,530-52,000 range.
Supports: 51,530 and 51,000
Resistance: 52,000 and 52,500
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