Bank Nifty futures (47,100)

Bank Nifty opened today’s session higher at 47,363 versus yesterday’s close of 47,094. However, the index gave up the gains and is now hovering around 47,000, down nearly 0.2 per cent.

The advance/decline ratio of Bank Nifty stands at 4/7, giving the index a bearish bias. Bank of Baroda, up 0.6 per cent, is the top gainer whereas AU Small Finance Bank, down 1.6 per cent, is the top loser.

The public sector banks are outperforming their private sector peers. Nifty PSU Bank has gained 0.7 per cent whereas Nifty Private Bank is down 0.3 per cent.

Bank Nifty futures

Bank Nifty futures (February expiry) began today’s session with a gap-up at 47,400 compared to yesterday’s close of 47,188. But it has now dropped to 47,100, down 0.2 per cent.

By closing at 47,188 on Tuesday, the Bank Nifty futures have broken out of the range of 45,000-47,000. Consequently, the odds of a rally from here have gone up.

From the current level, the nearest resistance levels can be spotted at 47,700 and 48,000. On the other hand, If Bank Nifty futures decline from the current level, 47,000 will offer support. A breach of this can drag the contract to 46,770.

Nevertheless, the chart shows a bullish inclination, and we anticipate a rally from the current level.

Trading strategy  

Buy Bank Nifty futures at the current level of 47,100. Add longs in case the price dips to 46,800. Place stop-loss at 46,400 initially.

When the contract touches 47,700, tighten the stop-loss to 47,450. Book profits at 48,000.

Supports: 47,000 and 46,770

Resistances: 47,700 and 48,000