Bank Nifty opened slightly higher today at 47,556 compared to yesterday’s close of 47,488. It appreciated further and is now at 47,770, up 0.6 per cent, so far today.
11 out of 12 stocks in Bank Nifty are in the green today, indicating considerable buying interest. HDFC Bank and Federal Bank, up 1.5 per cent each, are the top gainers. Bank of Baroda, down 1.2 per cent, is the only stock in this index to see a drop in price.
Broadly, the private banks are outperforming their public sector peers so far today. Nifty Private Bank gas gained 0.8 per cent whereas Nifty PSU Bank is flat.
Bank Nifty is currently trading above the 50-day moving average. But note that the trend has been bearish this week and the recovery seen today might be limited. There is a possibility for the index to stay sideways today.
Bank Nifty futures
Bank Nifty futures (May contract) began today’s session higher at 47,706 compared to yesterday’s close of 47,669. It is now trading around 47,930, up 0.6 per cent.
Although today’s session has been positive so far, note that Bank Nifty futures have a resistance between 48,100. Only a breach of this level will turn the bias in favour of the bulls. Resistance above 48,100 is at 48,500.
On the other hand, if Bank Nifty futures fall from here, it can find support at 47,500. Below this, the price band of 47,000-47,200 is the support band.
Trading strategy
Stay on the fence. Buy Bank Nifty futures if it breaks out of 48,100. Intraday target and stop-loss can be at 48,500 and 47,900 respectively.
Supports: 47,500 and 47,200
Resistance: 48,100 and 48,500