Bank Nifty futures (47,200)

Bank Nifty opened today’s session higher at 47,061 compared to yesterday’s close of 46,920. But the index declined a little post the open and is now trading around 47,000, up 0.2 per cent for the day.

The advance/decline ratio stands at 8/4, which shows some positivity. IDFC First Bank, up 2.2 per cent, is the top gainer whereas Bank of Baroda, down 2.6 per cent, is the top loser.

The private sector banks are broadly outperforming their public sector peers. Thus, Nifty Private Bank is up 0.4 per cent but Nifty PSU Bank is down 1 per cent.

Bank Nifty futures

Bank Nifty futures (February expiry) began today’s session with a gap-up at 47,100 versus yesterday’s close of 46,980. It is currently hovering around 47,200, up 0.5 per cent.

As long as Bank Nifty futures remain above the support at 47,000, the bias will be bullish. Nevertheless, there is a hurdle at 47,400 which is now blocking the bulls.

If the contract surpasses the barrier at 47,400, the rally will most likely be extended to 47,700 and then to 48,000, potential resistance levels.

But if Bank Nifty futures fall below 47,000, there is an immediate support at 46,770. A breach of this can lead to the contract witnessing a leg of downtrend, possibly to 46,400 or even to 46,000.

Trading strategy

Stay out for now and go long if Bank Nifty futures rally past 47,400. Place stop-loss at 47,150. Exit at 48,000.

Supports: 47,000 and 46,770

Resistances: 47,700 and 48,000