Bank Nifty futures (46,570)
Bank Nifty opened today’s session higher at 46,454, compared to yesterday’s close of 46,219. It is now at 46,450, up 0.5 per cent.
The advances/ declines ratio of the index stands at 10/2, which implies positive sentiment. Federal Bank, up 4.2 per cent, is the top gainer, whereas Axis Bank, down 0.1 per cent, is the top loser.
So far today, the private sector banks have outperformed their public sector peers. Nifty Private Bank has gained 0.6 per cent, whereas the Nifty PSU Bank index is up 0.3 per cent.
Bank Nifty futures
Bank Nifty futures (February expiry) began today’s session higher at 46,580 versus yesterday’s close of 46,385. It is now trading around 46,570, up 0.4 per cent.
The chart shows that Bank Nifty futures has crossed the hurdle at 46,350, a bullish signal. Hence, the chances for a rally to 47,000, its nearest notable resistance, is high. A breach of this can lead to a sharp rally. But that is less likely to occur today.
In case the contract falls from the current level and slips below 46,350, which is now a support, we could see a price drop to 46,000. A decline below this level is less likely today.
Trading strategy
Buy Bank Nifty futures now at 46,570. Add longs if the price dips to 46,350. Place stop-loss at 46,200. When the contract touches 46,800, tighten the stop-loss to 46,550. Exit at 47,000.
Supports: 46,350 and 46,000
Resistance: 47,000 and 47,720