Bank Nifty opened today’s session on a flat note at 49,808 as against yesterday’s close of 49,803. It then inched up and is currently hovering around 49,865, up 0.15 per cent.

Bank of Baroda is the top gainer by rising about 2 per cent so far today. On the other hand, AU Small Bank, down 2.5 per cent, is the top loser.

Nifty PSU Bank index has advanced nearly 1.5 per cent whereas Nifty Private Bank index is flat. So, broadly, the public sector banks have been outperforming their private peers so far today.

Bank Nifty futures

Bank Nifty futures (June contract) began today’s session at 49,996 as against last week’s close of 49,909. It is currently trading around 49,900.

The contract has been in an uptrend. But at the moment, it is tracing a horizontal band. The price action hint at Bank Nifty futures seeing a minor dip, possibly to 49,000, from the current level. Post this move, we expect the contract to resume the rally and move towards 52,000 in the forthcoming sessions.

That said, if Bank Nifty futures fall below 49,000, the downswing might extend to 48,500 or even to 48,000. But as it stands, such a fall looks less likely.

Trading strategy

For intraday positions, one should wait for Bank Nifty futures to moderate from here. That is, buy when the price softens to 49,300. Place initial stop-loss at 48,800. When the contract rallies past 50,000 after the trade is initiated, alter the stop-loss to 49,500. Exit at 50,300.

Alternatively, if Bank Nifty futures break out of 50,300 without a decline from the current level, traders can buy with a stop-loss at 49,900. Exit at 51,000.

Supports: 49,000 and 48,500

Resistance: 50,000 and 51,000