Bank Nifty started today’s session significantly higher at 46,895.90 compared to Monday’s close of 46,431.40. It now stands at 47,130, up 1.5 percent.
Reinforcing the bullish bias, 11 of the 12 stocks in the index have gained so far today. IDFC First Bank, up 4.1 percent, is the top gainer, followed by Federal Bank, which is up 2.3 percent.
Although both public and private sector banks are performing well today, the former have an advantage. Thus, the Nifty PSU banking index rose by 1.9 percent and the Nifty Private Bank index rose by 1.2 percent.
Bank Nifty Futures
Bank Nifty futures (December expiry) opened today’s session with a gap higher at 46,854.45 from yesterday’s close of 46,659.55. It now hovers at 47,250, up 1.3 percent.
The bias is bullish and there are no signs of reversal. We expect Bank Nifty futures to appreciate to 48,000. The likely resistance above is 48,200.
At the other end, the contract has its closest support at 47,000 and then at 46,800.
Generally speaking, the tilt is bullish, so traders may consider long positions.
Trading Strategy
Buy Bank Nifty futures now at 47,250. Add long positions if price falls to 47,030. Place stop-loss at 46,750.
When the contract exceeds 47,500, tighten the stop-loss to 47,300. Further increase the stop-loss to 47,600 when the price reaches 47,800. Book profits at 47,950.
Supported: 47,000 and 46,800
Resistance: 48,000 and 48,200
