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Bank Nifty opened today’s session with a gap-up at 44,395 versus Thursday’s close of 44,213. The index then moved higher to 44,470, up 0.6 per cent.
Substantiating the bullish inclination, all the stocks in the index have advanced so far today. Bank of Baroda and IndusInd Bank are the top gainers, up 1.6 and 1.2 per cent, respectively.
Today, the public sector banks seem to be broadly outperforming their private peers. Consequently, Nifty PSU Bank index is up 1.1 per cent whereas Nifty Private Bank index is up 0.6 per cent.
Overall, Bank Nifty is bullish, and the chart indicates further appreciation from the current level.
Bank Nifty futures
The October Bank Nifty futures opened today’s session higher at 44,503 versus yesterday’s close of 44,411 and is now hovering around 44,600.
The price action shows that the contract is likely to go up from the current level. Nearest resistance is at 45,000. A breakout of this level can lift Bank Nifty futures to 45,200.
On the other hand, if the contract declines, it can find support at 44,300. Subsequent support is at 44,000. The bias will be bullish as long as the contract stays above 44,300.
Trading strategy
Buy Bank Nifty futures now at around 44,600. Add longs in case the price dips to 44,400. Place stop-loss at 44,250.
Shift the stop-loss to 44,500 when the contract touches 44,800. Book profits at 45,000.
Supports: 44,300 and 44,000
Resistance: 45,000 and 45,200
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