Bank Nifty began today’s session at 50,513 versus previous session’s close of 50,373. The index is currently hovering around 50,680, up 0.6 per cent.

The advance/decline ratio stands at 8/4, a positive indication. Bank of Baroda, up 2.6 per cent, is the top performer whereas The Federal Bank, down about 1 per cent, is the top loser.

Nifty PSU Bank has appreciated 1.8 per cent whereas Nifty Private Bank is up 0.3 per cent. So, broadly, the public sector banks are outperforming the private peers.

Bank Nifty futures

Bank Nifty futures (November contract) opened today’s session at 50,580 versus yesterday’s close of 50,407. It is now trading at 50,700, up 0.6 per cent.

The contract, which has been showing good positive momentum, faced a resistance at 51,000 and has moderated to 50,700. Until the barrier at 51,000 holds, the bulls are at a disadvantage.

If the resistance at 51,000 is breached, Bank Nifty futures can rally to 52,000. However, if the contract declines from the current level of 50,700, it can find support at 50,500 and 50,250. A breach of 50,250 can take the contract to 50,000.

Trading strategy

Stay on the fence and buy Bank Nifty futures if it breaks out of 51,000. Target and stop-loss can be 52,000 and 50,500 respectively.

Supports: 50,500 and 50,250

Resistance: 51,000 and 52,000

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