Bank Nifty index, following the overall bullish bias in the market, opened today’s session with a gap-up at 44,319 versus yesterday’s close of 44,165. However, it has now give up the gains and is now trading at 44,175. But there are supports which can arrest the decline.

As it stands, 9 out of 12 stocks in the index are in the green. Bank of Baroda is the top gainer, up by 1.4 per cent whereas Kotak Mahindra Bank, down by 0.7 per cent, is the top loser. This is a positive sign.

Today, the public sector banks are outperforming the private banks – Nifty PSU bank index is up by 0.8 per cent whereas Nifty Private bank is trading flat.

Bank Nifty futures

The June expiry futures of Bank Nifty index opened on the front foot at 44,400 versus Tuesday’s close of 44,309. After marking a high of 44,425, the contract has now dipped to 44,330.

From the current level, the Bank Nifty futures has a series of supports. The nearest one is at 44,300 below which lies the support at 44,260. Subsequently, the rising trendline support is likely to provide support at 44,230. Therefore, the contract has a broad support band between 44,230 and 44,300.

Also read: Nifty prediction today — June 7, 2023: At a critical juncture

On the back of these, if the contract rebounds, it can rally to 44,500. A breach of this can lift the contract to 44,800. But in case the price drops below 44,230, there could be a swift fall to 44,000 or even to 43,800.

Trading strategy

Traders with a high risk appetite can buy Bank Nifty futures now at 44,330. Add more longs if the price dips to 44,260. Place stop-loss at 44,150. When the contract rallies past 44,500, tighten the stop-loss to 44,350. Book profits at 44,800.

Risk averse traders can wait for now and go long if the price softens to 44,260. Place stop-loss at 44,150. When the contract rallies past 44,500, tighten the stop-loss to 44,350. Book profits at 44,800.

Supports: 44,300 and 44,230

Resistance: 44,500 and 44,800

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