Bank Nifty opened today’s session higher at 44,707.35 against Thursday’s close of 44,623.85. The index, which stayed volatile during the initial hour, is now trading at 44,850, up 0.5 per cent.
Interestingly, all the stocks in the index are up, led by Bank of Baroda, up 3.2 per cent, followed by Bandhan Bank, up 2.1 per cent.
The public sector banks seem to be powering the rally in Bank Nifty. Within the banking space, Nifty PSU Bank has advanced 2.6 per cent whereas Nifty Private Bank has rallied 0.5 per cent.
Bank Nifty futures
The September Bank Nifty futures opened today’s session at 44,725 versus yesterday’s close of 44,759.25. The contract is currently trading around 44,980, up 0.5 per cent.
The contract is now facing a resistance at 45,000. Subsequent resistance is at 45,400. Given the momentum of recent fall, the upswing in the contract seen today so far is likely to be a corrective one.
So, we expect the contract to resume the fall at the current level of 45,000 or after extending the upside a little further to 45,200.
Bank Nifty futures could fall to 44,500, a support. A breach of this level can drag the contract to 44,100.
Short Bank Nifty futures now at 44,980 and short more in case the price rises to 45,200. Place stop-loss at 45,500.
When the contract falls to 44,600, tighten the stop-loss to 44,900. Book profits at 44,300.
Supports: 45,000 and 44,800
Resistances: 45,400 and 45,500