Bank Nifty index opened today’s session with a gap-up at 52,046 versus last week’s close of 51,135. It extended the upswing and is currently hovering around 52,140, up about 2 per cent.

Notably, all 12 stocks in the index have advanced so far today, showing strong positive signal. Bank of Baroda and Punjab National Bank, up 4.7 per cent each, are the top performers.

Nifty PSU Bank index has rallied 4.3 per cent and Nifty Private Bank is up nearly 1.5 per cent. While the banking stocks are doing well overall, public sector banks are outperforming their private peers. 

Bank Nifty futures

Bank Nifty futures (November) began today’s session higher at 52,000 against last week’s close of 51,082. It is now trading at 52,150, up 2.1 per cent. 

The chart shows good momentum and the likelihood of the contract rallying to 52,700 is high. A breakout of 52,700 can turn the outlook, which has been bearish in recent weeks, bullish. Resistance above 52,700 is at 53,000. 

On the other hand, if Bank Nifty futures decline from the current level of 52,150, it can find support at 51,500. Subsequent support is at 51,000. 

Trade strategy

Although the likelihood of a rally is high, the risk-reward ratio is unfavourable for longs at the moment. Traders can buy Bank Nifty futures for intraday if it drops to 51,800. Target and stop-loss can be 52,700 and 51,400 respectively. 

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