Bank Nifty futures (47,750)

Bank Nifty opened today’s session marginally higher at 47,319 versus last week’s close of 47,298. It then moved up and is now hovering around 47,480, up 0.4 per cent.

The advance/decline ratio is showing a bullish bias as 9 out of 12 stocks in Bank Nifty index are in the green. Bank of Baroda, up 1 per cent, is the top performer, whereas Bandhan Bank, down 0.1 per cent, is the top loser.

Both private and public sector banks are doing well so far today. Nifty Private bank has gained 0.5 per cent whereas Nifty PSU bank is up 0.3 per cent.

Bank Nifty futures

Bank Nifty futures (March expiry) began today’s session slightly lower at 47,625 as against last week’s close of 47,660. But then it recovered and is currently trading at 47,750, up 0.2 per cent.

Although Bank Nifty futures have rallied above 47,700, it is still hovering near this level. So, as it stands, we cannot count this move as a decisive breach of 47,700.

If the breakout sustains, we will most likely see a rally to 49,000, a potential resistance. Subsequent barriers are at 49,500 and 50,000.

On the other hand, if the contract falls back below 47,700, it could decline to 47,000, a support. Below this, 46,500 is the nearest support.

Trading strategy

Stay on the fence. Buy Bank Nifty futures if it rallies past 47,800. Place stop-loss at 47,400 at first. When the contract moves up to 48,500, tighten the stop-loss to 48,000. Book profits at 49,000.

Supports: 47,000 and 46,500

Resistances: 49,000 and 49,500