Bank Nifty began today’s session higher at 43,318.30 versus yesterday’s close of 43,017.20. It is currently trading at 43,325, up 0.7 per cent.

Showing a clear bullish bias, all 12 stocks in the index have gone up today. Bank of Baroda is the top gainer, 1.7 per cent, followed by Bandhan Bank, up 1.4 per cent.

While both public and private sector banks have gained, the former group has performed better so far. Thus, Nifty PSU Bank index has gained 0.9 per cent whereas Nifty Private Bank is up 0.7 per cent.

Interestingly, Bank Nifty is now trading above the 200-day moving average which now lies at 43,200. This is a positive sign.

Bank Nifty futures

Bank Nifty futures (November expiry) opened today’s session with a gap-up at 43,525 versus Thursday’s close of 43,320.55. It is now hovering around 43,500. .

The contract, although appears bullish, has a resistance nearby at 43,600. If this level is breached, the short-term trend will turn bullish. On a breakout of 43,600, Bank Nifty futures can rally towards 44,000.

On the other hand, if there is a drop in price from the current level, we can see Bank Nifty futures declining to 43,350, its nearest support. Subsequent support is at 43,100.

Trading strategy                           

Buy Bank Nifty futures after it breaks out of 43,600. Target and stop-loss can be at 43,950 and 43,450 respectively.

Supports: 43,350 and 43,100

Resistance: 43,600 and 44,000