Bank Nifty opened today’s session with a gap-up at 51,196 versus yesterday’s close of 51,007. The index rose further after opening and is now at 51,300, up about 0.6 per cent.
The advances/ declines ratio now stands at 11/1, a strong positive indication. Bank of Baroda, up 1.8 per cent, is the top gainer, whereas ICICI Bank, down 0.4 per cent, is the only loser.
Nifty Private Bank has gained 0.65 per cent so far today. But Nifty PSU Bank has outperformed by appreciating 0.85 per cent.
Bank Nifty futures
Bank Nifty futures (October contract) opened today’s session higher at 51,510 versus yesterday’s close of 51,374. It is now trading at 51,620, up nearly 0.5 per cent.
Even though there are positive indications, the chart shows that the contract is stuck between two important levels of 51,270 and 52,000.
If Bank Nifty futures break out of 52,000, it can rally to 52,600. But if it breaches the support at 51,270, it can decline to 50,850 and then potentially to 50,500.
So, broadly, the next leg of trend depends on the direction in which Bank Nifty futures move out of the 51,270-52,000 range.
Trading strategy
Traders can stay out until Bank Nifty futures trade within 51,270-52,000 price band. Initiate fresh positions along the direction of the break of this range.
Supports: 51,270 and 50,850
Resistance: 52,000 and 52,600