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Bank Nifty opened today with a considerable gap-up at 47,567.65 as against yesterday’s close of 47,092.25. It is currently at 47,780, up 1.5 per cent.
Substantiating the bullish bias, all the 12 stocks in the index are in the green. IndusInd Bank and ICICI Bank, up 2.2 per cent each, are the top gainers.
Broadly, the private sector banks are outperforming their public sector peers after the initial hour of trade. Hence, Nifty Private bank is up 1.6 per cent whereas Nifty PSU bank is up 0.6 per cent.
Bank Nifty futures
Bank Nifty futures (December expiry) opened today’s session significantly higher at 47,652.20 versus Wednesday’s close of 47,396.25. It is currently hovering around 48,000.
The trend is bullish and the chart shows that Bank Nifty futures has seen a fresh breakout, increasing the chances for the rally to continue.
The contract made a high of 48,200 in the first hour and then has moderated to the current level of 48,000. The price might dip to 47,850. However, the rally is expected to resume after that.
In such a case, Bank Nifty futures could touch 48,500, a potential resistance. Subsequent resistance is at 48,800. But if the contract slips below 47,900, it can drop further to 47,700.
Trading strategy
Buy Bank Nifty futures now at 48,000 and add longs in case the price softens to 47,850. Target and stop-loss can be at 48,500 and 47,680 respectively.
Supports: 47,850 and 47,700
Resistance: 48,200 and 48,500
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