Nifty Bank opened today’s session slightly lower at 48,895 versus yesterday’s close of 49,087. But the index gained strength and has been rallying well and is now hovering around 49,500, up 1 per cent at the end of the first hour of today’s trade.
All 12 stocks in the index are in the green, led by Punjab National Bank, Bank of Baroda and Axis Bank by appreciating 1.5 per cent each. AU Small Finance is the weakest with a gain of 0.1 per cent so far today.
Nifty PSU Bank has advanced 1.6 per cent so far today and Nifty Private Bank is up 1.2 per cent. Therefore, broadly, the public sector banks are outperforming their private peers.
Bank Nifty futures
Nifty Bank futures (February contract) opened today’s session at 49,100 against yesterday’s close of 49,208. It is now trading at 49,650, up 0.9 per cent.
Since the contract has surpassed 49,500, the intraday outlook has turned bullish. From the current level, we anticipate Nifty Bank futures to rally to 50,000. A rally past this can lift it to 50,200.
But in case the contract falls from the current level of 49,650, it will find support at 49,500. A breach of this can drag the Nifty Bank futures to 49,300.
Trading strategy
Go long on Nifty Bank futures and 49,650 and 49,500. Target and stop-loss for intraday can be 50,000 and 49,300 respectively.
Supports: 49,500 and 49,300
Resistance: 50,000 and 50,200