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Bank Nifty opened today on the front foot at 43,018.70 versus Wednesday’s close of 42,700.95. The index is currently at 43,140, up 1 per cent.
The bullish inclination is supported by the market breadth of the index — all 12 stocks in the index have appreciated today so far.
IndusInd Bank and Punjab National Bank, up 2.3 and 2.2 per cent respectively, are the leaders in Bank Nifty today.
While there are positive indications, the index is facing the 200-day moving average resistance at 43,160. Also, there is another resistance at 43,650. Only a break beyond 43,650 will turn the short-term outlook bullish for the stock.
Bank Nifty futures
Bank Nifty futures (November expiry) opened today’s session higher at 43,155.55, compared with yesterday’s close of 42,928.10. It is now trading at 43,360, up 1 per cent.
The contract’s near-term trend will turn bullish only if it surpasses the barrier at 43,600. Resistance above this level is at 44,000.
If Bank Nifty futures decline from the current level, it has support at 43,100. Subsequent support is at 42,850.
Trading strategy
To sum up, although the bias is bullish today, Bank Nifty futures continues to trade below a key resistance.
Hence, there is a good chance that the contract will stay sideways for the rest of the day. So, refrain from trading.
Supports: 43,100 and 42,850
Resistance: 43,600 and 44,000
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