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Bank Nifty began Thursday’s session at 44,181 versus Wednesday’s close of 43,964. The index is currently at 44,150, up 0.4 per cent after the initial hour of trade.
The advances/ declines ratio stands at 8/4, giving the index a bullish bias. ICICI Bank, up 0.9 per cent, is the top gainer, whereas Punjab National Bank, down 3.5 per cent, is the top loser.
Within the banking sector, broadly, the private banks are outperforming their public sector peers. Thus, the Nifty Private Bank index has advanced 0.4 per cent, while the Nifty PSU Bank index has lost 0.9 per cent.
Bank Nifty futures
The October Bank Nifty futures opened today’s session higher at 44,350 versus yesterday’s close of 44,214. It is currently hovering around the open price of 44,350.
The chart shows that the contract has support at 44,300. Since the equity market is broadly positive today, we expect the support to hold well. Bank Nifty futures might rally from the current level and touch 45,000, its nearest notable resistance.
On the other hand, if the contract falls below 44,300, it could extend the downswing to 44,000. However, as it stands, the probability of a rally looks high.
Trading strategy
Buy Bank Nifty futures at around 44,350. Add longs in case the price dips to 44,200. Place stop-loss at 44,000.
Shift the stop-loss to 44,500 when the contract touches 44,800. Book profits at 45,000.
Supports: 44,300 and 44,000
Resistance: 45,000 and 45,200
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