Bank Nifty opened today’s session at 50,053 versus yesterday’s close of 50,088. The banking index is now at 50,520, up nearly 0.9 per cent. Notably, 11 out of 12 stocks in the index are in the green, indicating good buying. Punjab National Bank and AU Small Finance Bank, up 1.6 per cent each are the top gainers. Federal Bank is the only loser, down 0.2 per cent.
Nifty PSU Bank is up 1.1 per cent so far today whereas Nifty Private Bank is up 0.6 per cent. So, the public sector banks are facing a greater buying pressure compared to the private peers.
Bank Nifty futures
Bank Nifty futures (November contract) opened today’s session at 50,386 versus yesterday’s close of 50,358. It is now hovering around 50,630, up nearly 0.6 per cent.
Though the contract attempts to recover, it might not go above the barrier at 51,000.
Sellers might start coming back at this level, potentially leading to a fresh fall to 50,000.
But if the resistance at 51,000 is breached, the contract can rally to 52,000.
Trading strategy
Stay on the fence. Initiate fresh short when Bank Nifty futures rise to 51,000. Target and stop-loss can be 50,000 and 51,500 respectively.
Supports: 50,000 and 49,500
Resistance: 51,000 and 51,500