Bank Nifty opened with a gap-up today at 43,627.75 versus Friday’s close of 43,318.25. The index is now at 43,530, up 0.5 per cent.
Supporting the bullish bias, the advances/ declines stands at 10/2. Axis Bank, up 2.2 per cent, is the top gainer, whereas Bank of Baroda, down 4 per cent, is the top loser.
Within the banking space, the private sector banks have appreciated, but the public sector banks are facing downward pressure. The Nifty Private Bank index is up 0.7 per cent, whereas the Nifty PSU Bank index is down 0.8 per cent.
Bank Nifty futures
Bank Nifty futures (November expiry) opened today’s session higher at 43,598.85, as against last week’s close of 43,509.10. It is currently trading at around 43,700, up nearly 0.4 per cent.
As long as the contract remains above 43,600, the bias will be bullish. Resistance is at 43,750, and above that at 44,000 and 44,270.
On the other hand, if Bank Nifty futures fall below 43,600, it could extend the fall to 43,450, a support. Below that, support is at 43,000.
Trading strategy
Wait for now and buy Bank Nifty futures if it rallies past 43,750. Place stop-loss at 43,580. When the contract crosses the hurdle at 44,000, tighten the stop-loss to 43,800. Book profits at 44,250.
Supports: 43,600 and 43,450
Resistance: 44,000 and 44,270