Bank Nifty began today’s session higher at 48,360 versus previous session’s close of 48,201. The index has rallied post the open and is now at 48,680, up 1 per cent so far today.

The advance/decline ratio stands at 8/4, giving the index a bullish bias. AU Small Finance Bank, up 3 per cent, is the top gainer whereas IDFC First Bank, down 4.8 per cent, is the top loser.

Broadly, the private banks are performing better than their public sector peers. Thus, Nifty Private Bank is up 0.8 per cent, one of the best performing sectoral indices so far today. Whereas Nifty PSU Bank is up 0.2 per cent.

Bank Nifty futures

Bank Nifty May futures began today’s session higher at 48,555 as against yesterday’s close of 48,380. It is now trading around 48,830, up 1 per cent at the end of the first hour of today’s session.

The nearest resistance is at 49,200 and so, we anticipate Bank Nifty futures to rise to this price level. If this level is breached, it can establish another leg of uptrend, potentially to 50,000.

On the other hand, if the contract falls from the current level, it can find support at 48,650 and 48,500. A drop below the latter is less likely to happen today.

Trading strategy

Go long on Bank Nifty futures now at 48,830 and on a dip to 48,650. Place initial stop-loss at 48,500. Exit at 49,200.

Supports: 48,650 and 48,500

Resistances: 49,200 and 50,000

Related Topics
comment COMMENT NOW