Bank Nifty began today’s session with a gap-up at 44,873 versus Tuesday’s close of 44,745.
The index is currently trading at around 44,840, up about 0.2 per cent.
The bullish bias is supported by the advance/decline ratio which stands at 9/3. PNB, up by 1.5 per cent, is the top gainer, while AU Small Finance Bank, down by 0.9 per cent, is the top loser.
Nifty PSU Bank, with a gain of around 1.2 per cent, is the top performer among the sectoral indices so far.
Nifty Private Bank is up by 0.2 per cent.
Bank Nifty futures
The July expiry futures of Bank Nifty opened the day higher at 44,956 versus yesterday’s close of 44,871. After marking a high of 45,017, the contract is now trading around 44,930.
Despite bullish bias, Bank Nifty futures seems to be stuck in the 44,800-45,025 range. Also, a falling resistance coincide at around 45,025, making it a strong resistance.
As a result, the contract should above the 45,025-levels to establish a sustainable rally.
The contract can rally to its nearest resistance at 45,200 only when it breaches 45,025 decisively. The contract’s subsequent resistance is at 45,500.
On the other hand, if the contract falls below 44,800, we might see a sharp fall to 44,500. The downswing could even extend to 44,150.
Trading strategy
Stay on the sidelines for now. Initiate trade along the direction of the break of the 44,800-45,025 range.
Supports: 44,800 and 44,500
Resistances: 45,025 and 45,200