Bank Nifty began today’s session at 50,549 versus Friday’s close of 50,577. The index has now appreciated to 50,770, up nearly 0.4 per cent.
The advance/decline ratio stands at 6/6. ICICI Bank, up 1 per cent, is the top gainer whereas Punjab National Bank, down 1.6 per cent, is the top loser.
Nifty PSU Bank has lost about 1 per cent whereas Nifty Private Bank is up 0.5 per cent. Therefore, so far today, the private banks are broadly outperforming the public sector peers.
Bank Nifty futures
Bank Nifty futures (September contract) opened today’s session at 50,761 versus Friday’s close of 50,781. It is now trading at 50,970, up nearly 0.4 per cent.
Note that the contract saw a decline in the initial hour of trade where it made a low of 50,255. But it has now recovered to 50,970.
There is a barrier at 51,000. A breakout of this can turn the intraday outlook bullish. Resistance above 51,000 is at 51,250. Subsequent resistance is at 51,600.
In case Bank Nifty futures decline on the back of the resistance at 51,000, it can retest 50,500. A drop below this can drag the contract back to 50,250.
Trading strategy
Short Bank Nifty futures now at 50,970 with a stop-loss at 51,200. Book profits at 50,500. Post initiating the trade, when the contract drops to 50,700, revise the stop-loss to 50,900.
Supports: 50,500 and 50,250
Resistance: 51,000 and 51,250