Nifty Bank opened today’s session with a gap-down at 48,464 versus yesterday’s close of 48,628. It is now hovering around 48,670, up 0.1 per cent.
The advance/decline ratio stands at 8/4, giving the index a bullish bias. Axis Bank, up 1.3 per cent, is the top gainer whereas IndusInd Bank, down 2.7 per cent, is the top loser.
Nifty PSU Bank is up 0.3 per cent whereas Nifty Private Bank has gained nearly 0.2 per cent. Broadly, the public sector banks are outperforming their private peers.
Nifty Bank futures
Nifty Bank futures (March contract) opened today’s session lower at 48,626 against yesterday’s close of 48,780. It is now trading at 48,820.
The chart shows that the contract is facing a barrier at 48,900. If this level is breached, the intraday trend will become bullish. In this case, Nifty Bank futures can rise to 49,300 and 49,600.
On the other hand, if there is a decline from the current level of 48,820, there is a support at 48,550. If this level is invalidated, the intraday trend can turn bearish where Nifty Bank futures can fall to 48,150.
As it stands, the contract is stuck between 48,550 and 48,900. The direction of the break of this price band will give us a clue about the next leg of trend.
Trading strategy
Stay out for now. Buy Nifty Bank futures if it breaks out of 48,900. Target and stop-loss can be 49,300 and 48,680 respectively.
Supports: 48,550 and 48,150
Resistance: 48,900 and 49,300