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Bank Nifty opened today’s session higher at 50,179 versus yesterday’s close of 49,895. However, it started falling soon after the opening and is now hovering around 49,950.
Thus, the index, which opened above the upper boundary of a range, has now fallen back to the price band. That said, the advance/decline ratio, at 9/3, is giving a positive bias to the index.
AU Small Finance Bank, up 1.3 per cent, is the top gainer. On the other hand, Federal Bank, down 1.1 per cent, is the top loser.
Broadly, the public sector banks are outperforming their private peers. Therefore, Nifty PSU Bank index is up 0.2 per cent whereas Nifty Private Bank index is flat so far today.
Bank Nifty futures
Bank Nifty futures (June contract) began today’s session with a gap-up at 50,101 versus yesterday’s close of 49,915. It is now trading at 50,050, up 0.25 per cent.
The contract continues to trade within the 49,600-50,300 range. Consequently, the direction of the next leg of trend remains uncertain at the moment.
In case Bank Nifty futures surpass the barrier at 50,300, it can extend the upswing to 51,500 and then 52,000. But if it slips below the support at 49,600, it can decline to 49,000, a support. Next support is at 48,800.
Trading strategy
Stay on the fence. Take trade along the direction of the break of the 49,600-50,300 range.
Supports: 49,600 and 49,000
Resistance: 50,300 and 51,500
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