Bank Nifty began today’s session lower at 49,262 versus previous session’s close of 49,397. The index recouped the losses and is now hovering around Tuesday’s closing level.

The advance/decline ratio of the index stands at 7/5, giving a minor bullish bias. Federal Bank, up 3.2 per cent, is the top performer whereas Kotak Mahindra Bank, down 3.6 per cent, is the top loser.

Nifty PSU Bank and Nifty Private Bank indices are flat so far today.

Bank Nifty futures

Bank Nifty May futures began today’s session lower at 49,300 as against yesterday’s close of 49,451. It is now trading around 49,450, flat so far today.

The chart hints at a possible correction from here. But it is unlikely to extend beyond the support at 49,250. Support below this level is at 49,000. The bullish inclination will remain until the support at 49,000 holds true.

On the other hand, if Bank Nifty futures rally from here, it can touch 50,000, a resistance. Subsequent resistance is at 50,200.

Trading strategy

Buy Bank Nifty futures if it slips to 49,250. Place stop-loss at 48,900. When the contract touches 49,800, tighten the stop-loss to 49,500. Book profits at 50,000.

Supports: 49,250 and 49,000

Resistance: 50,000 and 50,200