Bank Nifty opened today’s session at 52,177 versus yesterday’s close of 52,189. The index then gained strong bullish momentum and rallied. It is now at 52,450, up 0.5 per cent so far today.
The advance/decline ratio stands at 9/3, giving the index a positive bias. Bandhan Bank, up 2 per cent, is the top gainer whereas IDFC First Bank, down 1 per cent, is the top loser.
While Nifty Private Bank index has gained 0.4 per cent, Nifty PSU Bank is up by a marginal 0.1 per cent. So, broadly, the private sector banks seem to be outperforming the private peers.
Bank nifty futures
Bank Nifty futures (September contract) opened today’s session lower at 52,205 versus yesterday’s close of 52,296. It is now trading at 52,500, up 0.4 per cent.
The trend has been bullish and Bank Nifty futures has ended the first hour of today’s trade on a positive note. Therefore, the probability of the upswing extending is high.
The nearest resistance band from the current level is at 52,800-53,000. Subsequent barrier is at 53,500.
In case Bank Nifty futures turns southwards from here, it can find support at 52,200. Below this, the support is at 51,800. Nevertheless, a decline below 52,200 today is unlikely.
Trading strategy
We suggested buying Bank Nifty futures at 52,140 and 52,080 and place a stop-loss at 51,860 a couple of days back.
The buy order at 52,140 would have triggered yesterday but the contract did not fall to 52,080. So, as per our recommendation, traders would now be holding a long position on Bank Nifty futures initiated at 52,140.
Retain this trade. But revise the stop-loss up from 51,860 to 52,200. Tighten the stop-loss further to 52,480 when the price hits 52,620. Book profits at 52,670.
Supports: 52,200 and 51,800
Resistance: 52,800 and 53,000