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Bank Nifty moved up by one-third of a per cent on Monday and closed the session at 44,578.30. Today, the index opened slightly higher at 44,625 before softening to 44,570, and remained flat after the first hour of trade.
Federal Bank is the top performing stock in the index by advancing 1.3 per cent. At the other end, HDFC Bank, down by 0.5 per cent, is the top loser.
The public sector bank stocks are keeping Bank Nifty afloat. Nifty PSU Bank index has gained 1 per cent whereas Nifty Private Bank is flat.
Bank Nifty futures
Unlike the underlying Bank Nifty, the September futures of the index began slightly lower at 44,750 versus yesterday’s close of 44,781.50. It rallied initially to register a high of 44,870 and it has now moderated to 44,780.
The price action in the daily chart shows that the contract has been gaining positive momentum over the past few sessions. Hence, at this juncture, the probability of a rally is high. On the upside, there is potential for Bank Nifty futures to touch 45,200.
On the other hand, should there be a decline, there are supports at 44,680 and 44,570, which can restrict the fall.
Nevertheless, the bias seems to be bullish.
Participants can buy Bank Nifty futures now at 44,780. Accumulate longs in case the price dips to 44,680. Place stop-loss at 44,525.
When the contract rallies to 45,000, revise the stop-loss to 44,800. Tighten the stop-loss further to 44,900 when the contract moves to 45,100. Book profits at 45,200.
Supports: 44,680 and 44,570
Resistance: 45,200 and 45,500