Bank Nifty opened the week at 44,253 versus Friday’s close of 44,231. It moved up after opening and is now hovering around 44,310, up 0.2 per cent so far today. Thus, the index is testing a resistance within a broad sideways band.
Supporting the bullish view, the advance/decline ratio stands at 8/4. Punjab National Bank, up 1.8 per cent, is the top gainer. ICICI Bank is the top loser as it is trading down by 0.4 per cent.
The public sector banks are outperforming their private peers – Nifty PSU Bank index has advanced 0.75 per cent whereas Nifty Private Bank index is up 0.25 per cent.
Bank Nifty futures
The August contract opened today’s session higher at 44,299 versus Friday’s close of 44,222. After marking a high of 44,378, the contract is now trading at around 44,340.
The contract continues to trade within the broad sideways band of 43,870-45,000. So, the next leg of trend cannot be confirmed before Bank Nifty futures move out of this range.
Within this region, as it stands, the likelihood of a rally appears high. But there is a resistance at 44,360. If this level is breached, the contract will most likely rally to 45,000. On the other hand, if the barrier holds strong, the contract can drift lower towards 44,000.
Since there is a resistance at 44,360, traders can wait for now and go long once this level is invalidated. Target and stop-loss for this trade can be at 44,900 and 44,100 respectively.
Supports: 44,000 and 43,870
Resistance: 44,360 and 44,900