Bank Nifty futures (46,630)

Bank Nifty has opened the week with a gap-up at 46,555 versus Friday’s close of 46,385. The index is now hovering around 46,500, up 0.25 per cent at the end of the first hour of trade today.

Interestingly, out of the 12 stocks in Bank Nifty, 6 have advanced and the remaining 6 have lost. Bandhan Bank, up 1.8 per cent, is the top gainer. At the other end, IndusInd Bank, down 0.6 per cent, is the top loser.

While Nifty PSU Bank index is flat, Nifty Private Bank index is up by a marginal 0.1 per cent.

Bank Nifty futures

Bank Nifty futures (February expiry) began today’s session higher at 46,599 versus last week’s close of 46,503. It is now trading around 46,630, up 0.3 per cent.

Although the price action shows a bullish bias, the hourly chart of Bank Nifty futures denote that it has been trading in the narrow range of 46,400-46,700 since Friday.

If the contract breaks out of 46,700, it can rally to 47,000. A breach of this can potentially lead to a rally to 47,700.

On the other hand, if Bank Nifty futures slips below 46,400 it could quickly fall to 46,000, a support. Subsequent support is at 45,500.

Trading strategy                          

Buy Bank Nifty futures once it breaks out of 46,700. Place initial stop-loss at 46,300. When the contract surpasses 47,000, tighten the stop-loss to 46,700. Book profits at 47,500.

Supports: 46,400 and 46,000

Resistance: 47,000 and 47,700