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Bank Nifty opened today’s session slightly lower at 44,987 as against yesterday’s close of 45,012. But the index recovered and is hovering around 45,325, up 0.7 per cent at the end of the first hour of trade.
The advance/decline ratio of Bank Nifty stands at 9/3, giving it a bullish bias. ICICI Bank, up 1.3 per cent, is the top gainer whereas Punjab National Bank, down 2.7 per cent, is the top loser.
So far today, the private sector banks are outperforming their public sector peers. Nifty Private Bank has gained 0.7 per cent whereas Nifty PSU Bank index is down 0.9 per cent.
Bank Nifty futures
Bank Nifty futures (February expiry) began today’s session at 45,180 versus yesterday’s close of 45,212. It is now hovering around 45,470, up 0.6 per cent.
The contract has bounced off 45,150. The price region between 45,000 and 45,150 is a support band. But for the rally to sustain, Bank Nifty futures should break out of 45,800.
Such a breach can lift the contract to 46,300 or 46,500. But if the fall resumes and the support at 45,000 is invalidated, Bank Nifty could see another downswing, potentially to 44,000 quickly.
Trading strategy
Buy Bank Nifty futures if it surpasses the resistance at 45,800. Target and stop-loss can be at 46,300 and 45,550.
After initiating the trade, when the contract touches 46,100, revise the stop-loss to 45,900.
Supports: 45,000 and 44,000
Resistance: 45,800 and 46,300
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