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Bank Nifty began today’s session higher at 48,300 versus yesterday’s close at 47,925. But it gave back almost all the gains and now hovers around yesterday’s close.
The advance-decline ratio stands at 8:3, giving the index a bullish bias. State Bank of India, up 1.1 per cent, is the top gainer whereas ICICI Bank, down 0.3 per cent, is the top loser.
Broadly, public sector banks are performing better than private peers. Thus, Nifty PSU Bank is up 0.5 per cent, making it one of the best performing sectoral indices so far today. Whereas Nifty Private Bank is flat.
Bank Nifty futures
Bank Nifty April futures began today’s session higher at 48,176 as against yesterday’s close of 47,989. It is now trading at around 47,970.
The chart indicates that the contract may decline to 47,800 before recovering. This rise can potentially lift Nifty futures to 48,650 or even 49,000.
On the other hand, if it falls below 47,800, it could extend the slide to 47,400. A decline below this is less likely.
Trading strategy
Go long on Bank Nifty futures if it dips to 47,800. Add longs at 47,500. Place stop-loss at 47,300. When the contract rises above 48,000 after the longs are initiated, revise the stop-loss to 47,650. Book profits at 48,350.
Supports: 47,800 and 47,400
Resistance: 48,350 and 48,650
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