Nifty Bank opened today’s session with a gap-up at 48,732 versus Tuesday’s close of 48,608. It moved up after opening and is currently trading at 48,925, up nearly 0.7 per cent.
The advance/decline ratio stands at 8/4, giving the index a bullish bias. AU Small Finance Bank, up 4.5 per cent, is the top gainer whereas Canara Bank, down 0.7 per cent, is the top loser.
Nifty Private Bank is up 0.7 per cent whereas Nifty PSU Bank is down by a marginal 0.1 per cent. So, broadly, the private banks are aiding Bank Nifty to scale up.
Bank Nifty futures
Nifty Bank futures (February contract) opened today’s session at 48,750 against Tuesday’s close of 48,723. It is now trading at 48,950, up 0.5 per cent.
Although there is a bullish bias, the contract faces a barrier at 49,000. If this level is breached, Nifty Bank futures can extend the upswing to 49,200 and 49,500.
On the other hand, if the contract declines from the current level, it can drop to 48,500 and 48,350.
Note that today the February contracts expire and price movement in today’s second half of the session can be erratic. So, risk-averse participants can stay out.
Trading strategy
Traders who can take higher risk can buy Nifty Bank futures if it breaks out of 49,000. Target and stop-loss for today can be 49,400 and 48,800.
Supports: 48,500 and 48,350
Resistance: 49,000 and 49,500
