Bank Nifty, weighed by the broader bearish sentiment in the market, began today’s session lower at 48,314 versus yesterday’s close of 48,501. However, it started to recover soon after the open and is now hovering around 48,700, up 0.4 per cent.

Both public and private sector banks are rallying today. Nifty PSU Bank and Nifty Private Bank have advanced 0.4 per cent each so far today.

Supporting the bullish bias, the advance/decline ratio of Bank Nifty stands at 9/3. Punjab National Bank, up 0.9 per cent, is the top gainer whereas Bandhan Bank, down nearly 1 per cent, is the top loser.

Bank Nifty futures

Bank Nifty futures (June contract) opened today’s session slightly lower at 48,990 as against yesterday’s close of 49,011. It is now trading around 49,100, up 0.2 per cent.

The price action shows that Bank Nifty futures are currently trading in the 48,900-49,300 range. Only the breakout of this range can lend us a strong clue about the direction of the next leg of trend.

If the rally extends and the contract gets past 49,300, it can appreciate to 50,000. On the other hand, if Bank Nifty futures slip below 48,900, it can fall to 48,500, a support. A breach of this can intensify the sell off where the contract can decline to 48,000.

Trading strategy

Stay on the fence and take trade along the direction of the break of the 48,900-49,300 range.

Supports: 48,900 and 48,500

Resistance: 49,300 and 50,000