Bank Nifty opened today’s session with a gap-up at 48,880 as against yesterday’s close of 48,731. It is now hovering around 48,880, up 0.3 per cent at the end of the first hour of trade.

The advance/ decline ratio stands at 9/3, giving the index a bullish bias. Kotak Mahindra Bank, up 1.4 per cent, is the top gainer whereas Federal Bank, down 1.3 per cent, is the top loser so far.

The public sector banks are better performers than their private peers. Thus, Nifty PSU Bank has gained 0.5 per cent and Nifty Private Bank is up 0.3 per cent.

Bank Nifty futures

Bank Nifty April futures began today’s session higher at 48,901 as against yesterday’s close of 48,800. It is now hovering around 49,000, up 0.4 per cent.

On Tuesday, the contract witnessed a sell-off in the second half. But the support at 48,650 held well. On the back of this Bank Nifty has rebounded.

The trend is bullish, and we expect the contract to rally to 50,000, a potential resistance. But if Bank Nifty futures from here and breaks below the support at 48,650, the outlook can turn bearish.

Support below 48,650 is at 48,500. Subsequent support is at 48,300.

Trading strategy                          

Buy Bank Nifty futures now at 49,000 and add longs if the price falls to 48,700. Place initial stop-loss at 48,300.

When the contract rallies past 49,500, raise the stop-loss to 48,900. Book profits at 50,000.

Supports: 48,650 and 48,500

Resistance: 49,500 and 50,000