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Bank Nifty opened Thursday’s session almost flat at 44,418 compared to yesterday’s close of 44,409. After marking a high of 44,507, the index has now moderated to 44,460, up 0.1 per cent so far today.
The advances/ declines ratio stands at 7/4, giving the index a bullish bias. Punjab National Bank, up 1 per cent, is the top gainer whereas Bandhan Bank, down 0.3 per cent, is the top loser.
Nifty PSU Bank has advanced 0.6 per cent, whereas Nifty Private Bank is flat.
Bank Nifty futures
Unlike the underlying Bank Nifty, the September futures of the index began lower at 44,605 versus yesterday’s close of 44,644. It has now inched up to 44,660.
From the current level, the nearest support levels are at 44,640 and 44,500. Yesterday, the contract rebounded from the support at 44,500, showing that it is a considerable one. As long as these levels hold, the overall bias will be bullish.
While the nearest resistance level is at 44,800, the contract appears to extend the rally to 45,000. A breakout of this level can lift Bank Nifty futures to 45,200.
On the other hand, if the contract falls below 44,500, it can drop to 44,400 and then to 44,280.
Trading strategy
As it stands, the chances for a rally are high. Therefore, traders can buy Bank Nifty futures now at 44,660. Add more longs in case the price falls to 44,500. Place stop-loss at 44,400.
When the contract rises past 44,800, tighten the stop-loss to 44,640. Book profits at 45,000.
Supports: 44,640 and 44,500
Resistance: 44,800 and 45,000
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