Bank Nifty opened today’s session with a gap-up at 45,671.50 versus Friday’s close of 44,814.20. The index is now at 45,740, up 2 per cent.

All the 12 stocks in the index are in the green, showing strong positive momentum. Punjab National Bank, up 4 per cent, and Bank of Baroda, up 3.2 per cent, are the top gainers.

Public sector banks are considerably outperforming their private peers. Nifty PSU bank index is up over 3 per cent, whereas Nifty Private bank index is up 1.9 per cent.

Bank Nifty futures

Bank Nifty futures (December expiry) opened today’s session with a gap-up at 45,750.50 as against last week’s close of 45,071.20. It is now trading at 45,920, up 1.9 per cent.

The contract made a high of 46,034.95 in the first hour of trade and has softened to the current level of 45,920. The price level of 46,000 is a potential resistance.

So, we might see a corrective decline from the current level before witnessing the next leg of the rally. Bank Nifty futures might see a dip to 45,750 and then resume the upswing.

A fall below 45,750 is unlikely today. A breach of 46,000 will open the door for a rally to 47,000.

Trading strategy

Stay out for now and buy Bank Nifty futures once it falls to 45,750. Intraday target and stop-loss can be 46,000 and 45,620 respectively.

Supports: 45,750 and 45,620

Resistance: 46,000 and 47,000

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