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The Bank Nifty index opened Wednesday’s session higher at 44,420 versus yesterday’s close of 44,122. Yet, it has now moderated to 44,265. However, the breakout of 44,000 is positive and so the probability of a rally from here is high.
The advances/ declines ratio of the index is positive at 6/4. Two stocks are largely unchanged from yesterday’s closing price so far today.
Both public and private banks seem to be appreciating today – the Nifty PSU Bank index is up by 0.5 per cent, while the Nifty Private Bank index has advanced 0.3 per cent.
Bank Nifty futures
The June expiry futures of the Bank Nifty opened the day with a gap-up at 44,226 versus yesterday’s close of 44,089. The contract is now hovering around 44,240.
From the current level, 44,280 is a minor hurdle. However, given the upward momentum, we expect Bank Nifty futures to surpass this level and touch 44,500. A breach of this level can lift the contract to 44,800.
On the other hand, if there is a fall, the contract will find support between 44,000 and 44,050 initially. Support below 44,000 is 43,800.
Also read: Nifty prediction today–June 28, 2023: Index to rally further
Trading strategy
Since the likelihood of a rally is high, traders can buy Bank Nifty futures at 44,240. Add more longs if the price softens to 44,050. Place stop-loss at 43,900.
When the contract touches 44,400, tighten the stop-loss to 44,200. Book profits at 44,500.
Supports: 44,000 and 43,800
Resistance: 44,280 and 44,500
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